Hyderabad accounts for maximum absorption share of new units among top seven cities
Hyderabad accounts for maximum absorption share of new units among top seven cities
According to Anarock, about 35% of the housing units sold across seven cities in 2021 were in newly-launched projects, driven by fresh supply from branded developers and increased demand from investors.
In its report released on Thursday, Anarock said 2.37 lakh units were sold in the top seven cities in 2021 and of that 34% were new launches.
The remaining 66% of units sold in 2021 were in projects taken up in the preceding years.
The seven cities tracked by the company are – Delhi-NCR, Mumbai Metropolitan Region (MMR), Pune, Kolkata, Bengaluru, Chennai and Hyderabad.
In 2020, out of 1.38 lakh units sold in the top-seven cities, 28% were launched during the year.
During 2019, 2.61 lakh units were sold and out of that 26% were newly launched.
“Newly launched homes are back in demand after a long time, with the demand primarily shining on ready-to-move-in units,” said Anarock.
While end-users continue to drive the housing market and ready-to-move-in or soon-to-be-completed homes are still the most in demand, new launches are finding takers again.
Hyderabad has the maximum absorption share of new units among the top seven cities.
Of the 25,410 units sold in 2021 in the city, around 55% were launched in the same year.
MMR saw the lowest absorption of newly-launched homes – out of 76,400 units sold in 2021, only 26% were launched during the year.
Commenting on the trend, Anuj Puri, President, Anarock, said, “Preference end-users continue to rule for ready-to-move-in or near-complete homes. However, the scale of demand is slowly changing. ” Among other things, the increased sales share of newly launched homes heralds a revival of investor interest.
“This is important – in the last 3-4 years, investors had more or less moved out of the residential real estate phase and were focusing on other asset classes,” said Mr. Puri.
He also added that well-capitalized branded developers are accelerating their market share of new launches.
“The buyers are confident of the ability of such players to complete their projects on time,” said Mr. Puri.