In the backdrop of rising demand, housing sector will be seeing an upsurge in new home launches this festive season across top cities in India. In a run up to the festive season, many leading developers have been on a land buying spree in view of the anticipated housing launches during the festive quarter. The spurt in home prices over the last several months has prompted residential developers to make most of the opportunity by leveraging the festive season which creates additional demand for homes. As per Anarock, housing price saw a pan-India double-digit growth of 11 percent in the July-September quarter. Key residential players like Godrej, DLF, Signature Global, TARC, L&T etc have planned new launches in Delhi-NCR. Significantly, NCR saw about 15865 units sold in Q3 2023, a yearly rise of 6 percent. As the home buyers are more inclined towards large reputed and branded developers, as such many branded developers are ready with their pipeline of new launches.
The developers are bullish about new launches in the backdrop of high housing sales. According to a recent report by Anarock Group, housing sales registered a robust rise of 36 percent year on year to a record 120280 units during the September quarter , with stable home loan interest rates being a major driver. In FY ’23 , states and union territories collected a record revenue of Rs 2 lakh crore from stamp duty, registration fee and land revenue.
The industry’s optimism about record high new home launches stems from the high momentum of new launches seen during the July-September quarter. The top seven cities, according to Anarock saw a record 24% YoY increase in new home launches to 116220 units. On a quarterly basis , the rise recorded was 13%. NCR occupied third position in terms of new housing supply with 45% annual increase in new launches during the September quarter, next only to Pune and Hyderabad, with 67% and 60% annual increase respectively.
Though demand for ready homes remains strong among home buyers, however, there has been a noticeable shift between ready homes and newly launched homes. across cities. As of H1 2023, the ratio of ready homes to new launches has narrowed down to 28 : 27 against 46: 18 in H1 2022. The key reason for this is the depleting inventory of ready homes and increased new supply by large listed players who have gained the confidence of home buyers with high quality lifestyle homes and good delivery track record.
As home loan interest rates are likely to remain stable during the festive season, one would be witnessing a record number of home sales during the festive season. In line with the third quarter trend, mid-priced and luxury homes will drive new launches as these two segments notched up a highest sales share of 55%.