India's Housing Market Sees a Surge in New Launch Absorption Amid Renewed Buyer Confidence: Anarock Property Report
The Indian residential real estate market is undergoing a significant transformation, with homebuyers demonstrating an increasing preference for newly launched properties over ready-to-move-in (RTMI) units. According to the latest data from ANAROCK Research, 42% of approximately 4.60 lakh homes sold in 2024 were from newly launched projects—an impressive increase from the 26% recorded in 2019. This shift signals a growing appetite for lower prices, higher returns on investment (ROI), and the credibility of branded developers. As homebuyers seize opportunities in freshly introduced projects, cities like Bengaluru and Chennai are leading the charge in new supply absorption.
The Rising Popularity of New Launch Projects
The inclination toward newly launched projects has been steadily growing over the past five years, driven by several factors including price advantages, better investment potential, and increasing trust in reputed developers. ANAROCK’s data highlights a consistent upward trajectory:
2020: 28% of approximately 1.38 lakh units sold were from new launches.
2021: 34% of approximately 2.37 lakh units sold were from newly launched projects.
2022: 36% of approximately 3.65 lakh sold units were newly launched.
2023: 40% of approximately 4.77 lakh sold units were from fresh launches.
2024: A remarkable 42% of total sales came from newly launched projects.
This data reflects a growing preference for pre-construction investments, marking a shift from the earlier preference for RTMI properties, particularly in regions that previously struggled with project delays and speculative oversupply.
City-Wise Absorption Trends: Who’s Leading the Market?
Bengaluru and Chennai recorded the highest absorption rates for new projects in 2024, with 53% of homes sold in these cities being newly launched units. The trend is particularly noteworthy in NCR, where 44% of the 61,900 units sold in 2024 were from new projects—double the share recorded in 2019 (22%). This reversal is remarkable given NCR’s past struggles with unsold inventory and delayed projects.
Breakdown of New Launch Absorption in Major Cities (2024 vs. 2019)
| City | Total Units Sold (2024) | % Share of New Launch Absorption (2024) | Total Units Sold (2019) | % Share of New Launch Absorption (2019) |
|---|---|---|---|---|
| NCR | 61,902 | 44% | 46,920 | 22% |
| MMR | 1,55,334 | 36% | 80,870 | 23% |
| Bengaluru | 65,226 | 53% | 50,450 | 27% |
| Pune | 81,088 | 42% | 40,790 | 34% |
| Hyderabad | 58,540 | 43% | 16,590 | 28% |
| Chennai | 19,221 | 53% | 11,820 | 28% |
| Kolkata | 18,334 | 31% | 13,930 | 23% |
| Total | 4,59,645 | 42% | 2,61,370 | 26% |
The Mumbai Metropolitan Region (MMR) saw 36% of its 1,55,334 sales originating from newly launched projects, a significant rise from 23% in 2019. Similarly, Pune and Hyderabad recorded strong absorption rates of 42% and 43%, respectively.
While Kolkata saw the lowest share of new launch absorption at 31%, it still marked an improvement from 23% in 2019.
Why Are Homebuyers Choosing New Launches Over RTMI Homes?
The dramatic rise in new launch absorption can be attributed to several key factors:
1. Competitive Pricing and Higher ROI
Newly launched properties are typically priced lower than RTMI homes, allowing buyers to enter the market at a more affordable rate while ensuring a higher potential for capital appreciation. Investors, in particular, see greater long-term gains in under-construction projects.
2. Increasing Trust in Reputed Developers
Branded developers now dominate India’s housing market, providing much-needed assurance to homebuyers who were previously wary of project delays and financial mismanagement. The rise of market-proven, financially strong developers has led to enhanced confidence in the sector.
3. Improved Regulatory Environment
The implementation of the Real Estate (Regulation and Development) Act (RERA) has significantly increased accountability in the housing market, reducing risks for buyers and promoting the timely completion of projects.
4. Customization and Modern Features
Many new launches come with contemporary designs, smart home features, and flexible layouts that better suit modern buyers' needs. These projects often offer better amenities, improved sustainability features, and superior construction quality compared to older inventory.
5. Land Acquisitions Driving Fresh Supply
Developers are actively acquiring land in prime urban areas to cater to the growing demand. ANAROCK Research indicates that at least 133 land deals amounting to 2,515 acres were closed in 2024, with 1,948 acres designated for residential development—a clear indicator of strong market demand and developer confidence.
The Future of India's Residential Real Estate Market
With homebuyer sentiment at an all-time high, India’s residential real estate sector is on a strong growth trajectory. The rising preference for newly launched projects indicates a maturing market, driven by transparency, developer credibility, and strong demand fundamentals.
Cities like Bengaluru, Chennai, and Hyderabad will likely continue to see increased investor participation, while NCR’s resurgence marks a pivotal shift from its troubled past. Given the current trends, the share of new launch absorption may continue to rise in the coming years, further strengthening the housing market’s growth momentum.
