New housing supply surges by 51% in 2022 across seven cities

Anarock claims that in order to keep up with the demand, builders began more projects, which led to a 51% increase in the number of new residential units available last year, totaling 3,57,635 across seven major cities. The top real estate brokerage stated in its annual report for 2022 that new launches increased to 3,57,635 units last year from 2,36,693 units in 2021 across seven major cities. Five cities saw an increase in the number of housing units being launched: Chennai, Delhi-NCR, Kolkata, Bengaluru, Hyderabad, and Mumbai Metropolitan Region (MMR). According to Anarock, the total number of new launches in 2022 was less than the previous high of 2014, when more than 5.45 lakh units were introduced in the top seven cities. According to the data, the number of new launches in the MMR increased more than twofold from 56,883 units in 2021 to 1,24,652 units in 2022. In 2022, Bengaluru saw the launch of 49,196 new units, a 61% increase over the previous year's total of 30,646 units. Pune also saw a 61% increase in new launches, from 39,869 units in 2021 to 64,343 units in 2022. While fresh supply in Kolkata increased by 17% to 16,088 units last year from 13,746 units, new launches in Hyderabad increased by 32% to 68,007 units from 51,470 units. However, from 12,373 units the year before to 9,994 units in 2022, Chennai saw a 19% decrease in new launches. Residential property new launches in the Delhi-NCR market decreased by 20% to 25,355 units in the most recent calendar year from 31,706 units in 2021. Anuj Puri, chairman of Anarock, commented on the outlook for the new supply by saying that new launches are anticipated to remain in most major cities well under control. Ready-to-move-in will continue to top buyer demand but the demand for new launches will also gain momentum. This is largely because the new supply in the market is and will continue to be dominated by the large and listed developers in the new year, he observed. Puri emphasised that buyers of these substantial listed developers are confident in them. Hence they will continue to perform well and see significant sales, just as they did in 2022, he added. The report found, among other things, that housing sales in these seven cities increased by 54% in 2022 to 3,64,873 units, an all-time high, from 2,36,516 units the year before. According to the consultant, a rise in input costs and a recovery in demand after COVID are primarily to blame for the range of 4 to 7% annual increases in housing prices. At the end of 2022, the total number of unsold housing units in these seven cities was 6,30,953. See also: Housing sales hit new high in ’22 despite price rise Mumbai ranks 22nd in the Global Prime Cities Index