Developers Increase Premium Launches Despite Sales Slowdown
ECONOMY & POLICY

Developers Increase Premium Launches Despite Sales Slowdown

Listed real estate developers have pressed ahead with aggressive project launches this fiscal despite geopolitical uncertainty and a moderation in housing sales, according to a report by Choice Institutional Equities published on July seven. The brokerage projected 58.4 per cent year-on-year growth in pre-sales and 29.2 per cent growth in collections in the June quarter, citing a robust launch pipeline and healthy project execution. The report presented this as a signal that demand for branded and premium residential projects would remain resilient.

Residential sales in the top seven cities declined six per cent year-on-year during the quarter amid concerns over the West Asia conflict and a cautious buying environment, the report said. Developers largely looked through the near-term weakness and maintained an aggressive pipeline of new launches. New residential launches rose seven per cent year-on-year to around zero point one zero six million (mn) units in Q2CY26, underscoring developer confidence in the medium-term demand outlook.

The brokerage attributed optimism to sustained demand for branded and premium projects and noted sizeable planned activity across listed names. Godrej Properties planned projects with a gross development value (GDV) of around Rs 480 billion (bn) this fiscal while Puravankara outlined launches worth Rs 210 bn. Sobha planned to launch 20.67 mn square feet of residential projects and Aditya Birla Real Estate had identified projects with an estimated GDV of Rs 95.96 bn.

Residential pricing trends supported the outlook, with average housing prices in the top seven cities rising seven per cent year-on-year in Q2CY26, led by Delhi-NCR at 13 per cent and followed by Bengaluru at eight per cent. Strong collections were further supporting expansion plans, and the brokerage expected collections for its coverage universe to grow nearly 30 per cent year-on-year in Q1FY27, providing developers with the financial heft to acquire land and maintain construction schedules.

While the residential market moderated, the commercial real estate segment remained resilient with office leasing at 17.4 mn square feet in Q2CY26, supported by continued expansion of global capability centres and diversified occupier demand. Flexible workspace operators leased four point six mn square feet, up seven per cent year-on-year, while vacancy levels remained stable at around 15 per cent and prime office markets recorded rental growth of up to five per cent. Choice retained a positive outlook on residential and flexible workspace operators, citing long-term urbanisation and growth of branded housing as structural supports.

Listed real estate developers have pressed ahead with aggressive project launches this fiscal despite geopolitical uncertainty and a moderation in housing sales, according to a report by Choice Institutional Equities published on July seven. The brokerage projected 58.4 per cent year-on-year growth in pre-sales and 29.2 per cent growth in collections in the June quarter, citing a robust launch pipeline and healthy project execution. The report presented this as a signal that demand for branded and premium residential projects would remain resilient. Residential sales in the top seven cities declined six per cent year-on-year during the quarter amid concerns over the West Asia conflict and a cautious buying environment, the report said. Developers largely looked through the near-term weakness and maintained an aggressive pipeline of new launches. New residential launches rose seven per cent year-on-year to around zero point one zero six million (mn) units in Q2CY26, underscoring developer confidence in the medium-term demand outlook. The brokerage attributed optimism to sustained demand for branded and premium projects and noted sizeable planned activity across listed names. Godrej Properties planned projects with a gross development value (GDV) of around Rs 480 billion (bn) this fiscal while Puravankara outlined launches worth Rs 210 bn. Sobha planned to launch 20.67 mn square feet of residential projects and Aditya Birla Real Estate had identified projects with an estimated GDV of Rs 95.96 bn. Residential pricing trends supported the outlook, with average housing prices in the top seven cities rising seven per cent year-on-year in Q2CY26, led by Delhi-NCR at 13 per cent and followed by Bengaluru at eight per cent. Strong collections were further supporting expansion plans, and the brokerage expected collections for its coverage universe to grow nearly 30 per cent year-on-year in Q1FY27, providing developers with the financial heft to acquire land and maintain construction schedules. While the residential market moderated, the commercial real estate segment remained resilient with office leasing at 17.4 mn square feet in Q2CY26, supported by continued expansion of global capability centres and diversified occupier demand. Flexible workspace operators leased four point six mn square feet, up seven per cent year-on-year, while vacancy levels remained stable at around 15 per cent and prime office markets recorded rental growth of up to five per cent. Choice retained a positive outlook on residential and flexible workspace operators, citing long-term urbanisation and growth of branded housing as structural supports.

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