Hyderabad: While ready-to-move-in homes still top the wish-list of most home seekers in the top seven cities, newly launched units are gaining increasing acceptance.
According to real estate consultancy Anarock Research data, out of the total 1.14 lakh homes sold during the January-March quarter of 2023 across the top seven cities, over 41% were in newly launched projects. Hyderabad accounted for the highest sales share of new units. Of the approximately 14,280 units sold here in the January-March quarter of 2023, about 46% were launched in the same period, it said.
Highlighting the growing trend, it said the sales share of newly launched homes was about 36 per cent during the same period in 2022 . In all, 99,550 units were sold in the top seven cities. In 2019, the sales share of newly launched homes was about 26% of the about 78,520 total units sold, the report said.
This year, NCR saw the lowest absorption of newly launched homes. Of the 17,160 units sold in the first quarter, just 30% were launched during the quarter. The remaining units sold were in projects launched before.
“For the longest time, ready-to-move-in homes remained in highest favour with homebuyers because of the previously abysmal project completion track record in many areas of the country. This is now changing. Under construction homes are increasingly finding takers. However, ready-to-move-in homes retain the top demand slot,” said Anuj Puri, chairman, Anarock Group.
On the reasons why the trend is picking up, he said: “Much of the new supply is by well-funded branded developers who will comply with RERA regulations and complete their projects as per schedule. In the first quarter this year, of the 1.14 lakh new units launched in the top seven cities, the branded vs non-branded developer share ratio stood at 59:41. In 2015, the ratio was 41:59. Also, investors are back on the housing market. Early-stage under-construction homes offer cost arbitrage that make residential real estate attractive to investors,” said Puri.
While the return of investors is positive for overall sales, an end-user driven market helps keep prices in check. Accelerated investor activity has historically led to unreasonable price hikes which eventually throttled back the overall housing market growth story, he said.
