Lok Sabha elections cool down home sales in April-June quarter: Report

Consumer sentiment still 'extremely positive' about real estate investments, it says

Home sales in India’s top eight cities declined 6 per cent in April-June compared to the previous quarter as investors and builders were cautious due to Lok Sabha elections, said a report on Thursday.

India held Lok Sabha elections in seven phases starting April 19. A total of 113,768 homes were sold in the second quarter of calendar year 2024 (CY 24) and 120,642 in the previous quarter (Q1), according to digital real estate brokerage firm PropTiger’s report titled ‘Real Insight Residential – April-June 2024’.

Sales rose 42 per cent in April-June compared to 80,245 units the same time last year, according to the Gurugram-headquartered firm.

Its report covered housing markets in Ahmedabad, Bengaluru, Chennai, Hyderabad, Kolkata, Delhi-NCR (Gurugram, Noida, Greater Noida, Ghaziabad and Faridabad), Mumbai Metropolitan Region (Mumbai, Navi Mumbai and Thane) and Pune.

"Demand for homes moderated during the April-June period on account of the general elections even though consumer sentiment continues to remain extremely positive about real estate investments on the back of strong fundamentals," said Vikas Wadhawan, group chief financial officer, REA India, and business head, PropTiger.com.

Among major cities, housing sales dipped the highest in Ahmedabad at 26 per cent quarter-on-quarter (QoQ). It was followed by 16 per cent in Kolkata and 14 per cent in Hyderabad.

The only major cities which saw a rise in sales were Bangalore (30 per cent) and Delhi NCR (10 per cent).

Property developers exercised caution, as evident by a decline in new launches.

New supply fell marginally 1 per cent to 101,677 units during the April-June quarter from 103,020 in the January-March period.

Now, the sector is looking at the Union Budget on July 23.

"Amid expectations of a pro-investment Union Budget after the formation of a new government at the Centre, we have reason to believe that sales numbers would strengthen in the coming quarters, especially during the festive months," said Wadhawan.