New Delhi [India], May 27 : The new supply of residential units in Tier 1 cities like Mumbai, Bengaluru, Thane, Delhi-NCR have declined by 19 per cent in the Q1(Jan-Mar) of 2024.
According to a report by Prop Equity, a total of 1,05,134 residential units were launched in Q1 which is a reduction of 19 per cent as compared to the previous year.
However, the report highlights that the reduction in new supply was met with a surge in demand, as the total absorption rate surpassed new supply by 38 per cent, resulting in a 16 per cent decline in unsold stock.
While, Thane emerged as the frontrunner with the highest share of new residential units, accounting for 22 per cent (23,237 units) of the total new supply. Pune followed with 18% (19,263 units), while Hyderabad and Bengaluru contributed 15 per cent (15,976 units) and 14 per cent (14,544 units) respectively.
The report says that Mumbai's real estate market has been invigorated by significant infrastructure developments. The completion of the trans-harbour link and metro expansion have driven an 18% year-on-year increase in absorption rates and a 31 per cent decrease in unsold inventory.
The upcoming Navi Mumbai International Airport, scheduled to open in March 2025, is fueling rapid growth in demand for properties in areas like Taloja, Old Panvel, and Neeral. The completion of the Trans-Harbour Link has already resulted in a 55 per cent increase in total absorption and a 12 per cent rise in absorption prices year-on-year.
According to the report, Bengaluru's real estate market is buoyed by upcoming infrastructure projects like the Blue Metro Line and suburban rail corridors, which enhance connectivity. As a major IT hub and startup capital, Bengaluru continues to attract developers like Godrej Properties, Brigade Group, and Prestige Group, who are launching premium and luxury projects.
The capital city Delhi NCR saw a 59 per cent surplus in absorption over new launches, with luxury units dominating the market. Over 69 per cent of new units had a ticket price above Rs 2 crore.
The scarcity of ready-to-move-in properties in Noida and Greater Noida, coupled with limited new projects from reputable developers, has driven up absorption prices.
The report also highlights that buyers are increasingly seeking high-end residential spaces that enhance their lifestyle, particularly in Gurgaon.
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