Real estate trends: Over 40% homes sold in top 7 cities in 2023 were newly launched projects, says report

Real estate trends: With over 40 per cent of the homes sold in 2023 being newly launched projects, there is a shift in the Indian residential real estate industry as homebuyers switch their attention from ready-to-move or almost-complete projects, as per data provided by real estate consulting firm Anarock on Wednesday, February 28.

The data also stated that approximately 4.77 lakh homes sold in 2023 were newly launched projects, which is an increase from 3.65 lakh units at 36 per cent share in 2022.  Compared to the pre-pandemic year of 2019, the sales of newly launched supplies were much lower, at 26 per cent with approximately 2.61 lakh homes sold that year.
 
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."

Among the top seven cities in India, NCR saw the lowest absorption rate of newly launched homes, at 27 per cent with only 65,625 units sold in 2023. However, Gurugram outperformed other markets in the NCR region by 35 per cent with 36,970 newly launched units sold in Millennium City.  
 
“Markets like Gurugram are seeing stellar performances by branded players, with projects being sold out within a short time of their launch,"  says Puri.
 
Region-wise, southern cities like Chennai, Bengaluru, and Hyderabad saw the highest sales percentage share of newly launched projects. Chennai had the highest share of newly launched project units sold among all the top seven cities, at 58 per cent with approximately 21,630 units. The city had a drastic increase in percentage share compared to the pre-pandemic year of 2019 at 28 per cent with 11,820 units sold in 2019. 

Bengaluru ranked second with a 51 per cent share with approximately 63,980 units sold, followed by Hyderabad at 50 per cent with approximately 61,715 units sold in 2023.  

The Mumbai Metropolitan Region (MMR) witnessed a 36 per cent share with 1,53,870 newly launched units sold in 2023, compared to 80,870 units with a 23 per cent share in 2019.

Kolkata noticed a 30 per cent share, with 23,030 units sold, while Pune had a 41 per cent share, with 86,680 units sold. The data also 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.
 
"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," Puri added.

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