Fresh real estate launches across India’s top seven cities grabbed a 41% share in first quarter of 2023, marking an increase from the 26% recorded in the same period four years ago, according to a report released by property consultancy firm Anarock. Out of approximately 1.14 lakh units sold across the top seven cities in the first quarter of 2023, over 41% were fresh launches.
Hyderabad emerged as the city with the highest absorption of fresh supply, with approximately 46% of the 14,280 units sold in the first quarter of 2023 being newly launched. This represents a significant increase from 28% of the approximately 5,400 units sold in the first quarter of 2019. On the other hand, the National Capital Region (NCR) witnessed the lowest share of fresh supply absorption, with only 30% of the total 17,160 units sold in the first quarter of 2023 being newly launched. However, the NCR has experienced notable changes during this period.
Anuj Puri, chairman of ANAROCK Group, said, “For the longest time, ready-to-move-in homes remained in highest favour with homebuyers because of the previously abysmal project completion track record in many areas of the country. This is now changing under construction homes in new launches are increasingly finding takers, though ready-to-move homes retain the top demand slot."
Puri attributed this shift to the presence of well-funded branded developers who comply with regulatory requirements and complete their projects on time. Additionally, investor activity in the housing market has picked up, as early-stage under-construction homes offer cost advantages that attract investors who have been less active in the housing market in recent years.
The increasing sales share of newly launched homes has implications for the Indian residential property market. While the return of investors is positive for overall sales, a market driven by end-users helps maintain price stability. Excessive investor activity has historically led to unreasonable price hikes, which can ultimately hinder the growth of the housing market.
Among the top 7 cities, NCR had the lowest sales share of newly launched units in the first quarter of 2023, followed by Kolkata at 32%. Mumbai Metropolitan Region (MMR) saw its sales share of new units jump to 40% in the first quarter of 2023, up from 24% in the same period in 2019. In Chennai, approximately 41% of the 5,880 units sold in the first quarter of 2023 were newly launched, compared to 29% of the 3,430 units sold in the first quarter of 2019. In Kolkata, over 38% of the 6,190 units sold in the first quarter of 2023 were newly launched, while in the same period in 2019, 24% of the approximately 4,020 units sold were newly launched.
Bengaluru and Pune also witnessed significant increases in the sales share of newly launched units. In Bengaluru, the share rose to 43% in the first quarter of 2023 from 28% in the first quarter of 2019, while in Pune, it increased to 45% from 35% during the same period. Hyderabad had the highest sales share of newly launched units among the top 7 cities, with approximately 46% of the 14,280 units sold in the first quarter of 2023 being newly launched. This represents a significant increase from 28% of the approximately 5,400 units sold in the first quarter of 2019.
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