The residential market of the country continued its growth momentum even as it entered the new year 2024 with the first quarter sales clocking a robust 41 per cent increase year-on-year. It also saw around 1 lakh new housing units launched during Q1 2024 across the leading eight cities. Although a significant amount of pent-up supply was released during the first two years following the pandemic, the pace has somewhat slowed down, evident by a 30 percent decrease in new properties compared to the same period last year. However, it is important to note that this trend is observed only during the mentioned quarter. With developers actively positioning themselves in the top eight cities, it is anticipated that the next wave of new supply will enter the market in the latter half of the year.
Which Locations are Witnessing the Maximum New Supply?
In Q1 2024, Mumbai, Pune, and Hyderabad were at the forefront of the new supply tally, collectively representing a substantial 75 percent portion of the new properties introduced in the top-eight cities. Detailed analysis of micro-market trends indicates that Hinjewadi in Pune, Thane West in Mumbai, and Patancheru in Hyderabad saw the highest influx of new properties during the quarter.
Following these, other areas such as Panvel in Mumbai and Tellapur in Hyderabad also witnessed a significant influx of new properties.
Factors Driving Increased New Property Supply in These Locations
These locations have emerged as focal points for developers due to their various advantages. Hinjewadi, in Pune, has garnered attention as a burgeoning IT hub, fostering a strong demand for residential properties. Boasting numerous IT parks and tech companies, Hinjewadi benefits from its strategic location near major highways and ongoing infrastructure developments, making it an attractive proposition for both homebuyers and developers. Property rates in Hinjewadi typically range from INR 6,500/sqft to INR 8,500/sqft.
Meanwhile, Thane West in Mumbai has established itself as a prime location for new property developments. Its strategic positioning, excellent connectivity, and expanding infrastructure render it an appealing choice for investors and homebuyers alike, spurring developers to launch their projects here. The presence of renowned educational institutions, healthcare facilities, and shopping centres adds to its allure, propelling the demand for new properties. Current residential prices in the area hover around INR 14,500/sqft to INR 16,500/sqft.
In Hyderabad, Patancheru has emerged as a preferred destination for new property development. The region's rapid urbanization and infrastructural advancements have catalysed its transformation into a thriving residential hub. Patancheru's affordability, coupled with its proximity to key employment centres and industrial zones, make it an enticing option for homebuyers seeking value-for-money investments. The expansion of road networks and upcoming metro connectivity further enhance its accessibility and liveability, attracting both developers and potential buyers. Presently, residential properties in Patancheru are priced between INR 4,000/sqft to INR 6,000/sqft.
Furthermore, Panvel in Mumbai and Tellapur in Hyderabad have also experienced a surge in new property supply. Panvel's strategic importance as a transportation hub, connecting Mumbai to the broader landscape, has propelled its attractiveness for investment. The impending Navi Mumbai International Airport and planned infrastructure projects further amplify its appeal, with residential prices ranging from INR 6,500/sqft to INR 8,500/sqft. Similarly, Tellapur's vital setting in Hyderabad's western corridor, coupled with its well-planned infrastructure and proximity to IT hubs, make it an ideal residential destination, with prices in the range of INR 6,500/sqft to INR 8,500/sqft. The availability of land parcels for development and the government's emphasis on enhancing connectivity add to Tellapur's appeal, driving new property investments in the area.
Thus, these areas present lucrative opportunities for developers and homebuyers alike, given the various advantages – from thriving employment opportunities and excellent connectivity to planned infrastructure developments and affordability. As urbanization continues and demand for quality housing grows, these locations are poised to remain on developers' radar for the foreseeable future.
