MMR, the largest market for residential real estate in the country, reported a 9% decline in new home launches during Q1, 2024. In comparison to 37,260 units launched in Q1, 2023, new launches in MMR came down to 33,800 in the last quarter. Here, more than 59% of the new supply was added in the sub-Rs 80 lakh budget segment.

In Delhi-NCR, the fall has been steeper. New launches in the capital region plunged by 42% year-on-year - from 12,450 units to 7,270 units in Q1, 2024. Notably, 55% of the new supply was added in the ultra-luxury segment (homes priced above Rs 2.5 crore). In Kolkata and Pune, the number of new homes fell by 27% and 3% over the corresponding quarter previous year, respectively. In Kolkata, approx. 90% of the new supply was in the affordable and mid segments (priced up to Rs 80 lakh).

While in Hyderabad, new home launched during Q1, 2024 surged by 57% year-on-year to 22,960 units - up from 14,620 units. Over 33% of the new supply was added in the higher-ticket size of above Rs 1.5 crore price segment.

In Bengaluru, the jump has been 22% over the same quarter previous year - to 16,485 units. Approx. 66% of the new supply was in the mid-range and premium segments (Rs 40 lakh – Rs 1.5 crore). While in Chennai, new launches grew by 14% y-o-y. Here, at least 87% of the new supply was in the mid and premium segments (priced within Rs 40 lakh to Rs 1.5 crore).

Overall, the top 7 cities recorded new launches of around 110,865 units in Q1 2024 against 109,570 units in Q1 2023, increasing by just 1% over the corresponding period previous year. 

“Over the past year, a significant rise in demand for high-end and luxury properties has emerged at both national and local levels. This shift reflects a change in homebuyers’ growing desire to invest in a place not only to live, but as a high-quality asset that reflects their lifestyle aspirations. Furthermore, the demand for larger, more luxurious homes has attracted established developers with the capital and expertise to deliver premium, customized living spaces that cater to the aspirations of modern India. This trend has led to a surge in launches by established developers, significantly increasing their y-o-y contribution to the residential market. We expect this momentum to continue throughout the coming fiscal year (FY 2024/25) as well,” says Shalin Raina, Managing Director, Residential Services, Cushman & Wakefield.

According to Anuj Puri, Chairman, Anarock Group, despite new launches remaining above the 1 lakh mark in this quarter, available inventory in the top 7 cities dropped by 7% annually – from approx. 6,26,750 units by Q1 2023-end to approx. 5,80,890 units by Q1 2024-end. Among the top cities, NCR saw the highest decline of 27% in its unsold stock in Q1 2024. NCR's unsold stock is currently lower than in other prominent cities like MMR, Pune, and Hyderabad.