Report Reveals 15% Drop in New Housing Stock: Top 8 Cities Only Saw 69,000 Units Added from January to March
Despite rising demand, new housing supply in India's major cities sees a 15% drop, according to expert analysis from Cushman & Wakefield.
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A recent report from Cushman & Wakefield reveals the impact of a 15% decline in fresh housing supply on the real estate market across eight major cities, totaling 69,143 units from January to March despite strong demand.
While Bengaluru and Mumbai experienced slight increases in new supply, other cities like Delhi-NCR, Chennai, Hyderabad, Pune, Kolkata, and Ahmedabad saw declines.
Of all new launches in this period, the high-end and luxury segment accounted for 34%. Established developers contributed significantly, making up over 38% of the overall launches. Challenges faced by developers, including regulatory hurdles, land acquisition issues, and construction delays, have impacted housing supply. Other factors contributing to the decrease in housing supply include economic conditions and supply chain disruptions.
Specifically, Bengaluru saw an uptick to 8,848 units, while Mumbai's increase was marginal at 19,461 units. However, Ahmedabad witnessed a decrease to 4,529 units, Chennai dropped to 5,490 units, and Delhi-NCR plunged to 3,614 units. Addressing regulatory hurdles is crucial for boosting the fresh housing supply.
Hyderabad saw a decline to 11,090 units, Kolkata fell to 4,753 units, and Pune decreased to 11,358 units.
Shalin Raina, Managing Director of Residential Services at Cushman & Wakefield, highlighted a rising demand for high-end and luxury properties, indicating a shift in homebuyers' preferences towards quality investments. This trend has attracted established developers who are capable of delivering premium living spaces, leading to a surge in their contribution to the residential market. Reduced housing supply and property prices might exert upward pressure on property prices.
Raina expects this momentum to persist, underscoring the ongoing demand for larger, more luxurious homes and the ability of established developers to meet these evolving needs.
