Nifty Realty slips over 2% after housing sales decline 11% in Q3CY24

Housing sales during Q3CY24 slipped 11 per cent in India, with Mumbai Metropolitan Region (MMR) emerging as the top-performing market, despite a 13 per cent quarterly decline

Realty stocks declined on Monday's (September 30) intra-day trade after a report from real estate consulting firm ANAROCK Research revealed that housing sales declined during the third quarter of 2024 (Q3CY24).

At around 1:14 PM, the real estate index Nifty Realty was down 2.02 per cent at 1,095.2. In  comparison, the Nifty 50 was down 1.18 per cent at 25,871.1, around the same time.

On the index, nine stocks declined, while one advanced. Phoenix Mills was the top loser, slipping nearly 5 per cent, while Prestige Estates fell over 3 per cent. 

Similarly, Sobha and Macrotech Developers (Lodha) were down over 2 per cent each, while Raymond, DLF and Godrej Properties were down over 1 per cent each, followed by Oberoi Realty and Brigade Enterprises that were down 0.16 per cent and 0.11 per cent, respectively.

 

In contrast, one stock that traded in the green on the Nifty Realty index was Mahindra Lifespace Developers, which was up 0.22 per cent.

Housing Sales Fall

As per ANAROCK Research, Housing sales during the third quarter of 2024 slipped 11 per cent in India. During the quarter, Mumbai Metropolitan Region (MMR) remained the top-performing market with 36,190 units sold, despite a 13 per cent quarterly decline. 

Similarly, Bengaluru, Pune, Hyderabad, Kolkata and Chennai also experienced a downfall in sales as compared to the previous quarter and year.

Even though the top seven cities (including Delhi NCR, MMR, Bengaluru, Pune, Hyderabad, Kolkata, and Chennai) accounted for 80 per cent of the total sales, available inventory decreased by 2 per cent on a quarterly basis to approximately 5,64,415 units.

As per the report, after a two-year bull run, residential realty activity across the top cities stabilised in Q3CY24 -- typically a slow quarter due to the monsoon season and perceived inauspiciousness.

The data also revealed that sales continued to outstrip new supply in Q3CY24.

Additionally, all the top cities individually recorded a dip in housing sales. They also saw a fall in new housing supply, with approximately 93,750 units launched in Q3CY24, compared to 1,16,220 units in the corresponding period in 2023, a 19 per cent annual drop. READ MORE