Homebuyers are preferring to buy properties in newly launched projects over ready or close-to-completion homes, resulting in a dominance of large and listed developers in the new launch housing supply across the top seven cities.
According to data from ANAROCK, a real estate consultancy firm, 42 percent of 4.60 lakh homes sold in the top seven cities in 2024 were fresh launches. Bengaluru and Chennai saw the highest share in new supply absorption in 2024 – 53 percent each out of approximately 65,230 units in Bengaluru and 19,220 units in Chennai.
The top seven cities include Delhi NCR, Mumbai Metropolitan Region (MMR), Bengaluru, Chennai, Hyderabad, Kolkata and Pune.
Homebuyers’ preference for investment in newly launched projects has been rising steadily post the Covid-19 pandemic. In 2020, of around 1.38 lakh housing units sold in the top seven cities, 28 percent were newly launched in that year. In 2021, 34 percent of approximately 2.37 lakh sold units were new launches. Similarly, in 2022, a total of 3.64 lakh housing units were sold, of which 36 percent were fresh launches while in 2023 this figure was 40 percent of 4.77 lakh sold units.
Kolkata had the lowest share of fresh supply absorption at 31 percent of approximately 18,330 units sold in 2024. In Hyderabad, 43 percent of around 58,540 sold units were launched in the same year - significantly up from 28 percent of 16,590 units in 2019.
Similarly, in Pune, of 81,088 units sold in 2024, about 42 percent was in projects launched in that year - up from 34 percent of 40,790 units in 2019. In MMR, of 1,55,334 units sold in 2024, approximately 36 percent were fresh launches. In 2019, of 80,870 units sold, 23 percent were new units in Mumbai.
Experts said these trends show that customer confidence is back and Indians are unhesitatingly picking lower prices (and higher ROI) over the instant gratification of ready or nearing-completion homes.
Santhosh Kumar, Vice Chairman - ANAROCK Group, said that these days the rising dominance of branded and reliable developers in the Indian residential space is attracting investors to the best projects. In particular, Bengaluru, Hyderabad and Chennai saw a massive uptick in new launch sales share, because many investors are seeking low entry points in these cities.
Unlike the previous years, developers are now launching projects that meet market demand. These new projects are not only in prime locations but also feature the right unit sizes and configurations, he said.
Leading developers are actively acquiring land in key cities to launch residential projects tailored to customer preferences. ANAROCK data showed that 2024 saw at least 133 land deals totalling over 2,515 acres, with 1,948 acres designated for residential development.
Experts said that homebuyers in NCR are also preferring to invest in fresh launches these days. Ready-to-move-in (RTMI) homes were, in the past, the top pick for NCR homebuyers because of the chronic project delays that had defined the region in the pre-RERA era.
"NCR has clearly left its years of unsold speculative oversupply in the past as over 44 percent or approximately 61,900 units sold there in 2024 were launched in the same year. Given its troubled history, NCR homebuyers' growing preference for new launches over ready or close-to-completion homes is particularly remarkable,” Kumar said.
Kumar added that just 22 percent of the homes sold in NCR in 2019 were newly launched. This is a rapidly rising trend - helped by a strong pipeline of supply from financially strong and market-proven developers.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
Find the best of Al News in one place, specially curated for you every weekend.
Stay on top of the latest tech trends and biggest startup news.
