New Launches Gaining Momentum

Amidst housing sales hitting new peak in Q2 2023, the trend of pick up in new launches has gained momentum..

According to a latest report by Anarock Group, new launches across the top 7 cities once again breached the one lakh mark and witnessed 25% yearly rise – from 82,150 units in Q2 2022 to over 1,02,610 units in Q2 2023. Interestingly, MMR and Pune again saw the maximum new supply, accounting for 63% of the total new launches. Individually, the two cities saw 31% and 29% yearly increase in their new supply, respectively. 

New Launch Overview 

The key cities contributing to new launches in Q2 2023 included MMR (Mumbai Metropolitan Region), Hyderabad, Pune, and Bengaluru, together accounting for 84% supply addition.

• MMR saw approx. 43,390 units launched in Q2 2023 – increasing by 31% over Q2 2022. More than 61% new supply was added in the sub-INR 80 lakh budget segment.
• Pune added new supply of approx. 21,350 units in Q2 2023 compared to 16,560 units in Q2 2022 – an increase of 29%. 
• Hyderabad added approx. 10,470 units in Q2 2023, a yearly decline of 51% over the corresponding period last year. Over 43% new supply in Q2 2023 was added in the high-ticket price segment priced >INR 1.5 Cr.
• Bengaluru added approx. 11,440 units in Q2 2023, declining yearly by 9%. Approx. 68% new supply was added in the mid-range and premium segments combined, i.e., the INR 40 Lakh – INR 1.5 Cr. price bracket.
• NCR saw an increase of 52% in new launches against Q2 2022 with approx. 8,460 units launched in Q2 2023.
• Chennai added approx. 5,040 units in Q2 2023, a yearly increase of whopping 71% over Q2 2022.
• Kolkata added approx. 2,460 units in Q2 2023, an increase of 22% over Q2 2022. Approx. 76% new supply was added in the mid segment priced between INR 40 lakh – INR 80 Lakh.

Source: ANAROCK Research

Amid robust sales, available inventory across the top 7 cities reduced by 2% on yearly basis to approximately 6.14 lakh units as of Q2 2023-end. NCR witnessed the highest yearly decline of 21%. As the unsold inventory

gets reduced substantially in view of the robust sales, new launches may further see rise, though in a calibrated manner.