A report released on Wednesday by property consultancy firm Anarock reveals that fresh real estate launches in India's top seven cities captured a significant 41% market share in the first quarter of 2023. This figure represents a notable rise from the 26% recorded during the same period four years ago.
According to the report by property consultancy firm Anarock, of the approximately 1.14 lakh units sold in the top seven cities during the first quarter of 2023, more than 41% were newly launched properties.
According to the report, Hyderabad has emerged as the top city in terms of absorbing fresh real estate supply. In the first quarter of 2023, approximately 46% of the 14,280 units sold in Hyderabad were newly launched properties. This showcases a substantial increase compared to the first quarter of 2019 when around 28% of the approximately 5,400 units sold were fresh launches.
In contrast, the National Capital Region (NCR) experienced the lowest share of fresh supply absorption. Out of the total 17,160 units sold in the first quarter of 2023, only 30% were newly launched properties. However, it is worth noting that the NCR underwent significant changes during this period.
According to Anuj Puri, the chairman of ANAROCK Group, there has been a notable shift in homebuyer preferences. In the past, ready-to-move-in homes were preferred due to concerns over project completion delays in various areas of the country. However, this trend is changing. Under-construction homes in new launches are gaining traction among buyers, although ready-to-move homes still remain in high demand.
Anuj Puri, Chairman of ANAROCK Group, attributed the change in preference to the emergence of well-funded and reputable developers who prioritize regulatory compliance and timely project completion. This has instilled confidence among homebuyers in opting for under-construction homes. Furthermore, there has been a rise in investor activity in the housing market, driven by the cost advantages offered by early-stage under-construction properties. These advantages have attracted investors who have been relatively less active in the housing market in recent years.
The rising sales share of newly launched homes has significant implications for the residential property market in India. While the return of investors is beneficial for overall sales, a market-driven primarily by end-users plays a crucial role in maintaining price stability. The housing market's growth can be hindered by unwarranted price surges caused by an overabundance of investor activity in the past.
During the first quarter of 2023, the National Capital Region (NCR) had the lowest sales share of newly launched units among the top seven cities, with Kolkata following closely behind at 32%. In contrast, the Mumbai Metropolitan Region (MMR) witnessed a substantial increase in its sales share of new units, jumping to 40% in the first quarter of 2023 from 24% during the same period in 2019.
In the first quarter of 2023, Chennai witnessed a rise in the sales share of newly launched units, with approximately 41% of the 5,880 units sold falling into this category. This represents an increase from the 29% share recorded during the same period in 2019 when approximately 3,430 units were sold. Similarly, Kolkata experienced significant growth in the sales share of newly launched units, with over 38% of the 6,190 units sold in the first quarter of 2023 being newly launched. In comparison, approximately 24% of the approximately 4,020 units sold during the same period in 2019 were newly launched.
Bengaluru and Pune also experienced substantial growth in the sales share of newly launched units. In Bengaluru, the share rose from 28% in the first quarter of 2019 to 43% in the first quarter of 2023. Similarly, in Pune, the sales share of newly launched units increased from 35% to 45% during the same period.
In the first quarter of 2023, Hyderabad emerged as the top city with the highest sales share of newly launched units among the top seven cities. Approximately 46% of the 14,280 units sold during this period were newly launched, marking a significant increase from the 28% share observed in the first quarter of 2019 when approximately 5,400 units were sold.
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