India's major cities experienced a significant surge in residential property launches during the first half of the year, with approximately 1.32 lakh homes introduced to the market. This figure represents a notable increase of five per cent when juxtaposed against the corresponding period last year, indicating a positive trajectory in the real estate sector.
The eight major metropolitan areas, encompassing Ahmedabad, Bangalore, Chennai, Hyderabad, Kolkata, Mumbai, Delhi-NCR, and Pune, collectively witnessed the introduction of 125,592 housing units during the same timeframe in the preceding year.
Housing Unit Launches by Segment
- Affordable Segment: Approximately 31,440 housing units were launched.
- Middle-Income Segment: Around 75,535 units were introduced.
- High-Income Segment: Roughly 24,040 units were made available.
- Luxury Housing: More than 1,120 luxury residences were unveiled across these major urban centers.
Decline in New Launches
However, a discernible decline in new launches was observed during the third quarter, primarily attributable to less-than-favorable economic conditions impacting developers. Weak demand coupled with rapid price escalation in major cities has caused developers to take a considered approach including throughout recent festive periods.
The launch of new units decreased by 43,907 units during Q2, compared to the 47,048 units launched in the previous quarter.
Demand Overview
Demand for both new and resale units has remained reasonably sturdy, as genuine buyers possessing sufficient capital view this period as an opportune moment to enter the property market due to relatively stable capital values.
Developer Strategies
Most developers are targeting strategies to ensure the customers can achieve maximum value from their product. The primary focus for most developers nationwide remains on maintaining low levels of unsold inventory to stimulate sales.