The Indian real estate market experienced a significant shift in 2024, as 42% of the 4.6 lakh homes sold in the top seven cities were from newly launched projects. This marked a notable rise from the 26% share of new launches in 2019, reflecting a changing preference among homebuyers. According to Anarock, this trend is seen as a growing buyer preference for fresh developments over ready-to-move-in homes, driven by factors such as affordability, higher return on investment (ROI), and the allure of modern amenities and infrastructure.

Cities Leading the Trend

Among the major cities, Bengaluru and Chennai stood out, where 53% of the homes sold in 2024 were from fresh launches. These cities saw the highest share of new project sales, indicating the strong appeal of newly developed homes. The National Capital Region (NCR) followed closely, with 44% of the sales attributed to new launches. Other cities like Hyderabad and Pune also demonstrated strong buyer interest in fresh launches, with 43% and 42% of sales respectively coming from these developments.

Interestingly, the Mumbai Metropolitan Region (MMR) recorded 36% of its sales from newly launched projects, while Kolkata had the lowest proportion at 31%, yet still demonstrating significant interest in fresh housing projects.

Market Response and Developer Trends

This shift in consumer preference has not gone unnoticed by developers, who are actively responding to this demand for newly launched homes. In 2024, there were a total of 133 land deals covering 2,515 acres, with 1,948 acres earmarked for residential projects. This highlights the increasing interest from developers in acquiring land for residential purposes, focusing on new projects to cater to the evolving demands of homebuyers.

Market-proven developers, particularly those with a strong financial standing, are dominating the supply side, which has greatly contributed to homebuyer confidence. This trend of new launches is likely to continue, with more branded developers entering the market. These developers are offering customized housing solutions that align with the changing preferences of buyers, who are increasingly looking for homes that reflect modern lifestyle trends.

Factors Driving the Shift

Several factors contribute to this growing preference for fresh launches. Lower prices of newly launched homes compared to ready-to-move-in homes have played a significant role, along with the promise of higher returns on investment. With new developments, buyers often see better long-term value, as these projects are equipped with modern infrastructure, energy-efficient systems, and contemporary designs that align with the demands of today’s homebuyers.

Furthermore, many of these new homes come with customized features and options, allowing buyers to choose from a range of offerings tailored to their needs. This flexibility in new projects has become a key factor in attracting homebuyers, who are increasingly seeking more control over the design and features of their homes.

Outlook for the Future

The trend of growing demand for newly launched homes is expected to continue into 2025 and beyond, as more developers enter the market with tailored solutions. The Indian real estate market is set for further expansion, with a focus on providing modern living solutions that cater to the evolving tastes and preferences of homebuyers. The rise of new project launches will continue to shape the landscape of urban housing in India, making it an exciting time for the real estate sector.

In conclusion, the shift towards newly launched homes reflects a growing confidence in India’s real estate market, supported by strong developers and evolving buyer preferences. With affordable pricing, high ROI potential, and modern amenities, this trend signifies a positive outlook for the Indian housing market in 2024 and beyond.

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