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.

Also Read: Need for Housing Stock Through PPP: BMC Commissioner

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Bagaluru in Bengaluru tops the list with an astonishing 90% increase in average residential prices, climbing from INR 4,300 per square foot in 2019 to approximately INR 8,151 per square foot in the first half of 2024. This rapid price growth is attributed to a significant influx of new supply, with around 17,065 units introduced in the area during this period. Notably, over 94% of these new units were in the mid and premium segments, with no new affordable housing added.

Hyderabad’s Kokapet follows closely, with a 89% rise in property prices. The area saw its prices soar from INR 4,750 per square foot in 2019 to INR 9,000 per square foot in early 2024. Approximately 12,920 new units were launched, with more than half of the new supply falling into the ultra-luxury category.

Whitefield, another prominent locality in Bengaluru, recorded an 80% price appreciation, with average prices increasing from INR 4,765 per square foot to INR 8,600 per square foot. The area saw about 18,600 new units introduced, with the majority in the mid and premium categories.

The Dwarka Expressway in the National Capital Region (NCR) ranks fourth, with a 79% increase in average prices. The locality’s prices jumped from INR 5,359 per square foot in 2019 to over INR 9,600 per square foot in the first half of 2024.

Sarjapur Road in Bengaluru, and Bachupally and Tellapur in Hyderabad also feature prominently in the rankings, with price increases of 58%, 57%, and 53% respectively. Other notable mentions include Panvel in the Mumbai Metropolitan Region (MMR) and New Gurugram in NCR, which experienced price rises of 50% and 48%, respectively.

In terms of new housing supply, MMR’s Dombivli was the most active market, with approximately 44,990 new units launched over the past five years. Sarjapur Road in Bengaluru and Panvel in MMR followed, with 36,150 and 34,400 new units respectively.

Anuj Puri, Chairman of ANAROCK Group, commented on the trends, stating, “The acceleration in housing prices, particularly over the past two years, highlights a robust demand coupled with significant new supply. While the commonly held belief that high new supply limits price growth is not always true, our data shows substantial appreciation in many active residential micro-markets.”

Puri also noted that, despite high new supply in some areas, residential prices have continued to rise significantly. For example, Greater Noida West in NCR, with the fifth-highest supply in the region, saw a remarkable 129% increase in prices.

As the real estate market continues to evolve, these trends indicate a dynamic landscape where demand, supply, and pricing are closely intertwined. The data underscores the importance of monitoring micro-market activity for understanding broader market movements.

Also Read: Residential Sales in Top Seven Cities Projected to Grow in FY2025

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