The decrease in supply was largely due to the Lok Sabha elections in 2024 which slowed down the project approval significantly, according to the Anarock report
India’s housing market has witnessed a decrease in new property launches in November 2024, ANI reported, citing a study by Nuvama. According to the report, the state of Indian real estate sector was that of disbalance in the demand and supply. While demand side witnessed significant increase driven by premium properties across India, the supply failed to keep the pace due to a decrease in new property launches.
“Demand surges; launches fall...The ongoing premiumisation trend in India’s property space implies that volume-value trends have diverged sharply,” the report mentioned. “With the luxury/premium housing segment performing well, prices have surged in all major cities,” the report added.
On a year-on-year basis, the supply of properties nosedived 44 per cent whereas the demand showed significant growth of 16 per cent.
Another report by Anarock stated a 7 per cent year-on-year decline in the number of units launched. The study mentioned that nearly 4,12,520 new units were launched in 2024 against 4,45,770 units in 2023. The Mumbai Metropolitan Region (MMR) and Bengaluru together recorded nearly 50 per cent of the total new property launches while Chennai, Bengaluru and NCR being the only cities to see new launch supply growth.
The luxury and ultra-luxury segments (above Rs 1.5 crore price range) contributed the most with 30 per cent of the overall new property launches, followed by 28 per cent of those ranging between (Rs 40-80 lakh), 26 per cent between the bracket of Rs 80 lakh and 1.5 crore, according to the study by Anarock Property Consultants. The share of affordable housing was the lowest at 16 per cent.
The decrease in supply was largely due to the Lok Sabha elections in 2024, which slowed down the project approval significantly. The upcoming year is likely to witness the supply going up with listed developers contributing to the supply.
“...Apart from the dampening effect of general and assembly elections, project approvals slowed down markedly; this inevitably impacted new housing supply,” said chairman, Anarock Group, Anuj Puri. “2025 will see generous new supply infusions by listed developers, who have significant inventory lined up,” Puri added.
According to another report by Anarock, the top 11 listed Indian developers have committed to launch nearly 253.16 million sq. Ft. of new residential properties over the upcoming years. Out of 253.16 million sq. Ft. only 23 per cent, which is nearly 57.15 million sq. Ft., was launched in the first half of 2025.