42% of Newly Constructed Homes Sold! HomeBuyers Rushing to Fresh Projects

Homebuyers are showing a strong preference for newly launched projects, with 42 per cent of the approximately 4.60 lakh homes sold in 2024 coming from fresh launches. This marks a significant jump from 2019, when only 26 per cent of the 2.61 lakh units sold were newly launched.

Latest data from Anarock highlights a steady rise in the share of newly launched homes sold over the past five years. In 2020, 28 per cent of the 1.38 lakh units sold were fresh launches, which increased to 34 per cent of 2.37 lakh units in 2021. The trend continued in 2022, with 36 per cent of 3.65 lakh units sold being newly launched, and further rose to 40 per cent of 4.77 lakh units in 2023, reflecting growing buyer confidence in new projects.

South India Leads In New Launch Absorption

Bengaluru and Chennai saw the highest share of fresh supply absorption, with 53 per cent of the 65,230 units sold in Bengaluru and 19,220 units sold in Chennai being launched in 2024 itself.

"NCR has moved past its era of speculative oversupply," said Santhosh Kumar, Vice Chairman of Anarock Group. “Over 44 per cent of the 61,900 units sold in 2024 were launched in the same year, a stark contrast to just 22 per cent in 2019. This shift is driven by stronger market confidence in financially stable developers.”

In contrast, Kolkata had the lowest share of new launch absorption at 31 per cent of 18,330 units sold in 2024, though this was still an improvement from 2019’s 23 per cent.

Investors Focus On The South

Investor interest is increasingly shifting southward, particularly to Bengaluru, Hyderabad, and Chennai. These cities have witnessed a surge in new launch sales, as investors seek early entry into prime projects.

Developers are now launching projects that align with market demand, featuring optimal locations, unit sizes, and configurations. Land acquisitions have been aggressive, with Anarock recording 133 land deals totaling over 2,515 acres in 2024. Of this, 1,948 acres were earmarked for residential development.

In 2024, the share of newly launched homes sold across the top seven cities saw a significant rise compared to 2019. NCR recorded a 44 per cent share of new launches out of 61,902 units sold, up from 22 per cent of 46,920 units in 2019. MMR followed with 36 per cent of 1,55,334 units sold being fresh supply, a notable increase from 23 per cent of 80,870 units in 2019. Bengaluru and Chennai led in new launch absorption, with both cities recording a 53 per cent share—Bengaluru saw 65,226 units sold in 2024 compared to 50,450 in 2019, while Chennai registered 19,221 units, up from 11,820.

Hyderabad also showed strong growth, with 43 per cent of its 58,540 units sold in 2024 being newly launched, a sharp rise from 28 per cent of 16,590 units in 2019. Pune recorded 42 per cent of 81,088 units sold as new launches, compared to 34 per cent of 40,790 units in 2019. Kolkata had the lowest share of new supply absorption at 31 per cent of 18,334 units sold, though it still improved from 23 per cent of 13,930 units in 2019.

Overall, fresh launches accounted for 42 per cent of the 4,59,645 units sold across these cities in 2024, up from 26 per cent of 2,61,370 units in 2019, reflecting the growing preference for newly launched projects among homebuyers.

The increasing dominance of branded developers and improved buyer confidence are key factors driving this trend. With robust land acquisitions and strategic project launches, new supply absorption is expected to maintain momentum in the coming years.

Garvit Tiwari, Director & Co-Founder, InfraMantra, Property consulting firm says,

The rise in demand for newly launched projects shows the growing confidence that developers have earned over the past couple of years especially big listed developers. As a result, homebuyers are investing in those properties at a lower price. Also, the operationalisation and strict oversight of RERA has ensured fair practices, transparency and investor confidence in the real estate sector. The emergence of new micro markets across top cities have also tilted the preference of homebuyers towards newly launched projects.