The Indian residential real estate sector witnessed a significant shift in homebuyer preferences in 2023, with an increasing focus on newly launched projects by Grade A developers. According to the latest research by ANAROCK, approximately 40% of the 4.77 lakh units sold across the top 7 cities in 2023 were from newly launched projects. This marks a notable increase from the 26% share of newly launched units out of the 2.61 lakh units sold in 2019, indicating a growing confidence among homebuyers in new projects.
The trend of preferring newly launched projects has been on the rise since 2020, when 28% of the 1.38 lakh units sold were newly launched. In 2021, this share increased to 34% of the 2.37 lakh units sold, and in 2022, it further rose to 36% of the 3.65 lakh units sold.
Among the top 7 cities, the National Capital Region (NCR) saw the lowest absorption of newly launched homes, with only 27% of the approximately 65,625 units sold in 2023 being newly launched. However, Gurugram outperformed other markets in the NCR region, with at least 35% of the 36,970 units sold in 2023 being newly launched.
Anuj Puri, Chairman of ANAROCK Group, attributes this shift in buyer behavior to the increasing dominance of branded developers with strong financial backgrounds and proven track records of completing projects. These developers have been focusing on launching projects that cater to the actual demand, with a strong emphasis on good locations and appropriate unit sizes and configurations.
The NCR real estate market has witnessed a significant transformation, with a shift away from under-construction homes due to years of oversupply and speculative pricing. However, there is still some hesitancy towards under-construction homes in the region.
Puri also highlights the increasing trend of developers acquiring land parcels across key cities to develop residential projects that align with customer preferences. In 2023 alone, there were 97 separate land deals for over 2,707 acres closed across the country, with at least 72% of the sold land earmarked for residential development.
City-wise, southern cities like Bengaluru, Hyderabad, and Chennai saw the highest sales share of newly launched units in 2023. Chennai, in particular, witnessed a significant increase, with newly launched units accounting for 58% of the 21,630 units sold in 2023, up from 28% in 2019.
In conclusion, the increasing dominance of Grade A developers and their focus on launching projects that meet actual demand have fueled a significant increase in the sale of newly launched units in the top 7 cities in 2023. This trend is expected to continue as developers strive to cater to the evolving preferences of homebuyers.
