Homebuyers now choose new launches over ready-to-move homes

With large and listed developers dominating the new launch housing supply across the top 7 cities, homebuyers are pressing the ‘buy’ button in newly-launched projects. Customer confidence is back with a bang and Indians are unhesitatingly picking lower prices (and higher ROI) over the instant gratification of ready or nearing completion homes, according to ANAROCK.

Latest ANAROCK data shows that over 42% of approx. 4.60 lakh homes sold in 2024 was in newly-launched projects – significantly up from pre-pandemic 2019’s sales share of 26% of approx. 2.61 lakh homes sold then.

This figure has been rising steadily over the past 5 years:

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

* In 2021, 34% of approx. 2.37 lakh sold units were new launches.

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

* In 2023, 40% of approx. 4.77 lakh sold units were new launches.

Santhosh Kumar, Vice Chairman – ANAROCK Group, says, “At 53% each, Bengaluru and Chennai saw the highest share of new supply absorption in 2024 – of approx. 65,230 units sold in Bengaluru in 2024, about 53% were launched in that year; similarly, in Chennai, 53% of approx. 19,220 units sold in 2024 were launched that year.”

“NCR has clearly left its years of unsold speculative oversupply in the past – over 44% or approx. 61,900 units sold there in 2024 were launched in the same year,” adds Kumar. “Given its troubled history, NCR homebuyers’ growing preference for new launches over ready or close-to-completion homes is particularly remarkable. Just 22% of the homes sold there in 2019 were newly launched. This is a rapidly rising trend – helped by a strong pipeline of supply from financially strong and market-proven developers.”

Ready-to-move-in (RTMI) homes were, in the past, the top pick for NCR homebuyers because of the chronic project delays that had defined the region in the pre-RERA era.

Today, branded, reliable developers’ rising dominance in the Indian residential space is also attracting investors to the best projects. In particular, Bengaluru, Hyderabad and Chennai saw a massive uptick in new launch sales share, which many investors are seeking low entry points in these cities.

Unlike previous years, developers are now launching projects that truly meet market demand. These new projects are not only in prime locations but also feature the right unit sizes and configurations. Leading developers are actively acquiring land in key cities to launch residential projects tailored to customer preferences. According to ANAROCK, 2024 saw at least 133 land deals totalling over 2,515 acres, with 1,948 acres designated for residential development.

City-wise Absorption Trends

* Kolkata had the lowest share of fresh supply absorption at 31% of approx. 18,330 units sold in 2024. That said, this figure was even lower in 2019, when just 23% of the 13,930 units sold that year were new launches.

* In MMR, of 1,55,334 units sold in 2024, approx. 36% were fresh launches. In 2019, of 80,870 units sold, 23% were new units.

* In NCR, of 61,902 units sold in 2024, approx. 44% were launched in the same year. In 2019, of 46,920 units sold, just 22% was in projects launched that year.

* In Chennai, of 19,221 units sold in 2024, newly launched units accounted for a whopping 53% share – up from 28% of 11,820 units in 2019.

* In Kolkata, of 18,334 units sold in 2024, about 31% were launched in that year. In 2019, 23% of approx. 13,930 sold units were newly launched.

* In Bengaluru, of 65,226 units sold in 2024, the sale share of newly launched units was 53% – up from 27% of 50,450 units in 2019.

* In Pune, of 81,088 units sold in 2024, 42% was in projects launched in that year – up from 34% of 40,790 units in 2019.

* In Hyderabad, 43% of approx. 58,540 sold units were launched in the same year – significantly up from 28% of approx. 16,590 units in 2019.

Commenting on this report, Garvit Tiwari, Director & Co-Founder, InfraMantra, said, “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 has also tilted the preference of homebuyers towards newly-launched projects.”