Updated March 3rd, 2024 at 19:39 IST

Grade A developers drive 40% surge in residential project sales across top 7 cities: Anarock

Grade A Developers Drive 40% Surge in Residential Project Sales Across India's Top 7 Cities

Reported by: Business Desk
Real estate | Image:Pixabay
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Grade A developers lead: A substantial 40 per cent increase in sales of newly launched residential projects across India's top 7 cities in 2023 can be attributed to the dominance of Grade A developers, according to recent findings from Anarock Research.

Out of approximately 4.77 lakh units sold in these urban centres, over 40 per cent were from newly launched projects. This marks a significant rise from the 26 per cent recorded in 2019 when around 2.61 lakh homes were sold.

Stronghold in south

Southern cities, particularly Bengaluru, Hyderabad, and Chennai, emerged as strongholds of this trend, with Bengaluru leading at 51 per cent, followed closely by Hyderabad at 50 per cent and Chennai at 58 per cent.

In contrast, the National Capital Region (NCR) saw a comparatively lower absorption rate of newly launched homes, with only 27 per cent of the 65,625 units sold in 2023 being from projects launched that year. However, Gurugram within the NCR region performed notably well, with at least 35 per cent of the 36,970 units sold being newly launched.

Prime location emphasis

Anuj Puri, Chairperson, Anarock Group, highlighted the strategic shift amongst developers towards projects that align with current demand, emphasising the focus on prime locations and suitable unit sizes.

"Their focus on good locations and appropriate unit sizes and configurations is very obvious. Several leading developers are snapping up land parcels across key cities to develop residential projects that are aligned with what customers want. Anarock data indicates that there were at least 97 separate land deals for over 2,707 acres closed in 2023 across the country, with at least 72 per cent of the sold land earmarked for residential development,” Puri said.

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Tailored offerings rise

This data reflects a departure from the oversupply and speculative pricing seen in previous years, signalling a shift towards more tailored residential offerings.

Market-wise absorption trends indicated the dominance of new launches, particularly in Bengaluru, Hyderabad, and Chennai, while Kolkata and Mumbai Metropolitan Region (MMR) reported relatively lower absorption rates.

Overall, these findings highlight a notable transformation in India's real estate landscape driven by Grade A developers, paving the way for a more consumer-centric approach and bolstering investor confidence in the sector.

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Published February 28th, 2024 at 15:47 IST