The housing market is poised for a surge in new supply in 2025, according to the latest data from ANAROCK. At the start of FY 2025, the top 11 listed developers announced plans to launch a total of 253.16 million square feet of new residential projects. However, only 23% of this planned supply, around 57.15 million square feet, was launched in the first half of FY 2025 (April to September 2024), indicating a strong pipeline of launches in the coming quarters.
Among the listed developers, Bengaluru-based Prestige Group has the largest planned supply, with 75 million square feet scheduled for launch over the next few years. However, the group launched just 13% of its planned supply (10.05 million square feet) in H1 FY 2025. Signature Global follows with the second-highest planned supply of 29.3 million square feet, with approximately 32% of its planned supply (9.5 million square feet) launched in the same period.
The other developers in the top 11 list, including Godrej Properties, Sobha Limited, DLF Limited, Brigade Enterprises, Mahindra Lifespace, and others, are also poised to release substantial new supply. However, a significant portion of their planned supply remains in the pipeline, with most of these launches expected in the latter half of FY 2025.
According to Dr. Prashant Thakur, Regional Director & Head of Research at ANAROCK, the low percentage of launches in H1 FY 2025 was primarily due to election-related approval delays. With the elections now concluded, developers are expected to accelerate their launches in the coming months. Thakur adds, “Given the high demand for branded housing, these developers are tapping into the capital markets for funding. In the first nine months of 2024, they raised INR 12,801 crore via Qualified Institutional Placements (QIPs), much of which will be allocated to land acquisition and residential project launches.”
The demand-supply dynamics are also shifting in favor of developers. Inventory overhang across the top 7 cities (Mumbai, Delhi NCR, Bengaluru, Hyderabad, Pune, Chennai, and Kolkata) is at its lowest point in 14 months, with just 14 months of unsold housing inventory left by the end of September 2024. This is a marked improvement from 17 months in the same period last year, signaling a recovery in the housing market. Inventory overhang refers to the number of months it would take for the current unsold stock to be absorbed at the current rate of sales. A period of 18-24 months is considered a balanced inventory level.
Among the top 7 cities, Hyderabad has the highest inventory overhang at 19 months, while Bengaluru has the lowest at just 8 months. Over the past two years, Bengaluru’s unsold inventory has decreased by 6 months, while Hyderabad has seen a more modest drop of 2 months. Hyderabad has also witnessed a substantial infusion of new supply over this period.
As new launches increase in 2025, the reduced inventory overhang, combined with rising demand for branded housing, is expected to drive a more balanced and competitive market. Developers are expected to meet this demand with fresh supply, fueled by the capital raised through QIPs and other funding mechanisms. With the election-related delays behind them, the next few quarters could see a wave of new housing projects across India’s top cities.
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