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A total of 11 listed developers aim to launch 253.16 million sq ft of real estate across Indian cities, driven by strong demand for branded residential offerings, according to Anarock. In H1 FY 2025, 57.15 million sq ft (23% of planned supply) has already been introduced. Developers raised INR 12,801 crore via QIPs in 2024 for land acquisition and project launches. Inventory overhang dropped to 14 months by 9M 2024, down from 18 months the previous year, with Bengaluru showing the shortest overhang at 8 months and Hyderabad at 19 months. The surge in supply and robust market response highlight a transformative phase for India's real estate sector.
A total of 11 listed developers are planning to introduce 253.16 million sq ft of new real estate supply across various cities in the coming years, as revealed by an analysis by Anarock. This comes on the back of a growing demand for branded residential offerings, which has led developers to significantly ramp up their plans. In the first half of FY 2025, approximately 23% of this planned supply, or 57.15 million sq ft, was already launched. Advertisement
Prashant Thakur, regional director and head of research at Anarock Group, highlighted that in response to strong demand, developers have been raising funds through qualified institutional placements (QIPs). For instance, in the first nine months of 2024, developers raised INR 12,801 crore through QIPs. These funds are largely earmarked for land acquisition and the launch of new residential projects. This influx of capital has ensured that developers are well-funded and positioned to meet market needs.
Looking at the market trends, the inventory overhang across the top seven cities had dropped to its lowest level in recent years, standing at just 14 months by 9M 2024. This represents a notable improvement from the previous year when the inventory overhang was at 18 months, signaling strong demand for residential properties and a healthy market response.
Breaking it down by city, Hyderabad currently has the longest inventory overhang among the top seven cities, with a period of 19 months. However, Bengaluru stands out with the shortest inventory overhang at just 8 months. Over the past two years, Bengaluru's unsold stock has reduced by six months, reflecting its increasingly robust market. In contrast, Hyderabad saw a more modest dip of two months, despite considerable new supply being introduced over the same period.
Notably, the supply infusion in Hyderabad has been significant, with major developers focusing on addressing both residential and commercial real estate demands. As of 2023, Hyderabad saw a 15% increase in new project launches compared to the previous year, driving down unsold inventory and increasing absorption rates.
The real estate market is witnessing significant shifts as developers, bolstered by substantial investments from QIPs, aim to meet the growing demand for residential properties. With 253.16 million sq ft of new supply planned over the coming years, the market is set for a major transformation. The reduction in inventory overhang, particularly in cities like Bengaluru, is a clear indicator of a thriving real estate sector. As developers continue to invest heavily in land acquisition and new residential projects, the industry is poised for continued growth, ensuring a vibrant real estate landscape in the near future.
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