The growing dominance of branded developers in India’s residential real estate industry is changing purchasers’ focus away from ready-to-move or almost-complete buildings and toward freshly launched developments. While in the decade preceding 2020, Indians preferred ready-to-move houses due to frequent instances of project delays and brokers going bankrupt, in the present decade, a greater percentage of purchasers are reserving properties at the start of the respective projects.

According to the most recent data from Anarock Research, almost 40% of the nearly 4.77 lakh houses sold in 2023 were from freshly launched developments. The percentage of sales from freshly released supply in the pre-pandemic year of 2019 was substantially lower, at 26%, with around 2.61 lakh dwellings sold.

The results show a consistent increase in the proportion of newly launched residences in yearly sales. Growing from 26% in 2019, the percentage of newly launched homes in total home sales for the year increased to 28% in 2020, when around 1.38 lakh units were sold. In 2021, the percentage increased to 34% of the total 2.37 lakh residential units sold in the major metropolitan areas. In 2022, the percentage of newly launched dwellings in the total 3.65 lakh units sold increased to 36%.

Among the top seven cities, Delhi-NCR had the lowest uptake of newly released dwellings. Of the 65,625 units sold in 2023, about 27% were introduced throughout the year. The remaining units sold were from developments that began in previous years. Gurugram did better than other markets in the NCR area. Of the 36,970 apartments sold in Millennium City in 2023, at least 35% were new.

While Chennai, Bengaluru, and Hyderabad led the pack, more than half of all residences sold in 2023 were built during those years. In Chennai, 58% of all residences sold in 2023 were built during the years, followed by Bengaluru (51%), and Hyderabad (50%).

The fact that 40% of newly released dwelling stock has already been sold in the major cities demonstrates growing homebuyer trust in new developments. Previously, ready homes were the most appealing option during project delays, but this tendency is changing. This is due to the growing market share of financially strong branded developers with solid completion track records over the previous 2-3 years,” says Anuj Puri, Chairman of Anarock Group.

Real Estate Developers Focused on Location and Design Drive Demand

According to him, developers’ emphasis on desirable locations and acceptable unit sizes and layouts is contributing to the recent spike in demand for newly launched homes. “Several big developers are buying up land lots in important cities to build residential developments that are in line with client preferences. According to the statistics, at least 97 distinct land sales totaling over 2,707 acres were concluded in 2023 across the country, with at least 72% of the sold property destined for residential construction,” he says.

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Source – Business Today