New supply peaked in 2023, says Economic Survey; cites PropTiger data on launches  

July 22, 2024: Housing supply hit a peak last year, and continues to maintain a robust momentum in 2024, the government’s Economic Survey 2023-24 released today said.

While stating that households have also been at the forefront of the capital formation process in the country apart from private corporations, the Survey said that growth in housing sales in cities has been particularly impressive, indicating that urban households are diversifying the deployment of their savings.

“In 2023, residential real estate sales in India were at their highest since 2013, witnessing a 33 per cent YoY growth, with a total sale of 4.1 lakh units in the top eight cities. As per real estate research firm PropTiger, new supply witnessed an all-time high, with 5.2 lakh units launched in 2023, as against 4.3 lakh units in 2022. The momentum continued in Q1 of 2024, witnessing record-breaking sales of 1.2 lakh units, clocking a robust 41 per cent YoY growth. New supply has consistently exceeded one lakh units since Q2 of 2022, underscoring persistent demand-supply dynamics in the housing market,” the Survey said.

Projecting a positive outlook for the housing sector, the Survey said that the demand for housing was expected to be driven by affordability and increased access to credit, with significant contributions from southern, western and northern states.

Stating that the housing sector’s growth has been influenced by policy reforms such as the Goods and Services Tax, the Real Estate (Regulation and Development) Act (RERA), and the Insolvency and Bankruptcy Code, the Survey said that initiatives like the Affordable Housing Fund and Special Window for Affordable and Mid-Income Housing (SWAMIH) Investment Fund have supported affordable housing projects.

The Survey also estimates that 4.1 lakh dwelling units in real estate projects across the country involving Rs 4.1 lakh crore were under stress.