by THO
As much as 196 mn sq ft of new housing supply is expected to hit the real estate market in 2025, as only 23% of the total housing supply announced early this financial year was launched in H1 FY2025 due to the general and state elections, which in turn slowed down project approvals.
With elections now over, Anarock’s analysis shows that these listed developers are expected to launch multiple new products in the next few quarters.
ANAROCK’s data analysis of the top 11 listed developers shows that at the beginning of FY 2025, they announced plans to launch 253.16 mn sq. ft. of new supply across cities over the next few years. Interestingly, of this total planned supply, just 23% (approximately 57.15 mn sq ft.) were launched in H1 FY 2025, indicating a strong new supply pipeline over the coming quarters.
Among the top 11 listed players, Bengaluru-based Prestige Group – with 75 mn sq. ft – has the highest new supply planned over the next few years. They launched just 10.05 mn sq. ft. (or 13%) in H1 FY2025 across geographies. In early September, the Group indicated an overall project pipeline of at least 60 mn sq. ft.
Signature Global has the second-highest launch plan, with approximately 29.3 mn sq. ft. over the next few years. In H1 FY2025, they launched approximately 9.5 mn sq. ft. (32%) of their scheduled supply.
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“Various factors indicate that 2025 will see significant new supply added across cities, particularly by these listed developers. Amid high demand for their branded offerings, they have been aggressively tapping the capital markets via Qualified Institutional Placements (QIPs) for their expansion.
“Several players raised ₹12,801 crore via QIPs in 9M 2024. Much of these funds are earmarked for land acquisition and to launch residential projects. These players are more than adequately funded,” said Prashant Thakur, Regional Director and Head – Research, ANAROCK Group.
Inventory overhang down to 14 months
ANAROCK data shows the inventory overhang across the top 7 cities down to 14 months by 9M 2024-end, from 17 months in the corresponding period of 2023. This is the lowest-best inventory overhang in the last decade. This low inventory overhang will also prompt developers to add more supply to the market.
“City-wise, Hyderabad has the highest inventory overhang of 19 months among the top 7 cities, while Bengaluru has the lowest at just 8 months,” said Thakur.
Also Read: Housing sales decline by 11% YoY across top seven cities in Q3 2024; Mumbai, Bengaluru lead supply
“In the last two years, Bengaluru saw its unsold stock drop by 6 months while Hyderabad saw a dip of just two months. Hyderabad also saw considerable new supply infusions in the last two years,” he added.
