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The ever-increasing dominance of branded developers in Indian residential real estate is shifting homebuyer attention from ready-to-move or almost-complete projects to newly launched projects. Latest ANAROCK Research data shows that over 40% of approx. 4.77 lakh homes sold in 2023 was in newly launched projects. The share of newly launched supply sales in pre-pandemic 2019 was much lower at 26% of approx. 2.61 lakh homes sold that year.

* In 2020, of approx. 1.38 lakh units sold in the top 7 cities, 28% were launched during the year

* In 2021, 34% of approx. 2.37 lakh units sold in the top 7 cities were new launches

* In 2022, out of approx. 3.65 lakh units sold, 36% were new launches

Among the top 7 cities, NCR saw the lowest absorption of newly launched homes - of 65,625 units sold in 2023, about 27% were launched during the year. The remaining units were sold in projects launched before 2023. Interestingly, Gurugram outperformed other markets in the NCR region - of 36,970 units sold in Millennium City in 2023, at least 35% were newly launched.

Anuj Puri, Chairman - ANAROCK Group, says, “The fact that 40% of newly launched housing stock has already been sold across the top cities strongly underscores increasing homebuyer confidence on new projects. Ready homes became the biggest draw amid project delays in the past, but the trend is now changing. This is attributable to the increasing market share of financially strong branded developers with sound completion track records in the last 2-3 years.”

An increasing number of homebuyers are reposing their faith in these players, and newly launched projects are steadily gaining traction. These players have recorded very healthy sales since the pandemic, thanks to a stronger focus on market research.

“Also, in contrast to earlier years, developers are launching projects that dovetail with actual demand," says Puri. "Their focus on good locations and appropriate unit sizes and configurations is very obvious. Several leading developers are snapping up land parcels across key cities to develop residential projects that are aligned with what customers want. ANAROCK data indicates that there were at least 97 separate land deals for over 2,707 acres closed in 2023 across the country, with at least 72% of the sold land earmarked for residential development.”

The NCR real estate market has seen a complete transformation from previous times; nevertheless, a residual hesitancy towards under-construction homes in the region is a reminder of its years of oversupply and speculative pricing.

"With developers now carefully analysing and calibrating supply and ticket sizes, we are unlikely to see mistakes from the past being repeated,” adds Puri. “Markets like Gurugram are seeing stellar performances by branded players, with projects being sold out within a short time of their launch."

City-wise Absorption Trends

At 27%, NCR saw the lowest sales share of newly launched units in 2023. Gurugram has outperformed other key markets within the NCR with new supply seeing significant sales. Other cities with a low fresh supply absorption share include Kolkata and MMR at 30% and 36%, respectively.

* In MMR, of 1,53,870 units sold in 2023, approx. 36% were new launches. In 2019, of 80,870 units sold, 23% were in new units

* In NCR, of 65,625 units sold in 2023, approx. 27% were launched in the same year. In 2019, of 46,920 units sold, the sales share of newly launched units was 22%.

* In Chennai, of 21,630 units sold in 2023, newly launched units accounted for a healthy 58% share - up from 28% of 11,820 units sold in 2019.

* In Kolkata, of 23,030 units sold in 2023, about 30% were newly launched. In 2019, approx. 13,930 units were sold, of which 23% sales were of newly launched units.

* In Bengaluru, of 63,980 units sold in 2023, the sale share of newly launched units was 51% - up from 27% of 50,450 units in 2019.

* In Pune, of 86,680 units sold in 2023, the sale share of newly launched units was 41% - up from 34% of 40,790 units in 2019.

* In Hyderabad, of approx. 61,715 units sold in 2023, approx. 50% were launched in the same year - significantly up from 28% of approx. 16,590 units in 2019.

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