Surge Expected In New Housing Launches

Over the first two quarters of FY25 (April to September), new residential supply has been subdued due to several factors, including inflated home prices driven by investor speculation, the Lok Sabha elections, the monsoon season, and the inauspicious Shradh period. During this time, developers have largely taken a cautious 'wait-and-watch' approach.

However, we expect heightened activity in the housing market during the October to December quarter. With the onset of the Navratri (Durga Puja) festival on October 3, followed by Diwali at the end of the month, and culminating with the Christmas-New Year season, there is an expected surge of new launches across major cities.

Despite the slowdown in new launches from branded developers, there remains strong demand for properties in prime locations from both end-users and investors. Developers are offering discounts and incentives to attract buyers, which is likely to drive sales. Moreover, the potential for an interest rate cut in the upcoming RBI monetary policy could provide an additional boost to housing demand, which has already been strong in the post-COVID landscape.