Demand for apartments in newly launched projects rises in 2021 with 34% share of total sales: report

Among the top 7 cities, Hyderabad accounted for the maximum absorption share of new units

Among the top 7 cities, Hyderabad accounted for the maximum absorption share of new units

According to Anarock, almost 35% of the housing units sold in seven cities in 2021 were in newly launched projects, which were driven by fresh supply from brand developers and rising investor demand.

In its report released on Thursday, Anarock said that 2.37 lakh units were sold in the seven largest cities in 2021, of which 34% were new launches.

The remaining 66% of units sold in 2021 came from projects launched in previous years.

The seven cities tracked by the company are – Delhi-NCR, Mumbai Metropolitan Region (MMR), Pune, Kolkata, Bengaluru, Chennai and Hyderabad.

In 2020, of 1.38 million units sold in the seven largest cities, 28% were launched during the year.

In 2019 2.61 lakh units were sold and of this 26% were newly launched.

“Newly launched homes are back in demand after a prolonged period in which demand was primarily for move-in units,” Anarock said.

While end-users continue to drive the housing market and finished or near-complete homes are still the most in demand, new launches are finding buyers again.

Among the top 7 cities, Hyderabad accounted for the maximum absorption share of new units.

Of 25,410 units sold in 2021 in the city, about 55% were launched in the same year.

The MMR saw the lowest absorption of newly launched homes – of 76,400 units sold in 2021, just 26% were launched during the year.

Commenting on the trend, Anarock Chairman Anuj Puri said: “End users with a preference for ready-to-move or near-complete homes continue to prevail. However, the scale of demand is gradually shifting.” Among other things, the increased proportion of sales of newly opened homes indicates a revival of investor interest.

“This is significant – in the last 3-4 years investors had more or less exited the residential real estate phase and were concentrating on other asset classes,” Mr Puri said.

He also noted that well-capitalized brand developers have increased their market share in new launches.

“Buyers are confident in the ability of such players to complete their projects on time,” said Mr. Puri.

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