Business News | Residential Launches Dip by 5% in H1 CY25 Amid Market Caution, Rising Costs: Credai
Get latest articles and stories on Business at LatestLY. India's residential real estate sector has witnessed a slowdown in new project launches, with the number of units introduced in the first half of calendar year 2025 (H1 CY'25) falling to approximately 2.6 lakh, compared to around 3 lakh units during the same period last year.
New Delhi [India], August 2 (ANI): India's residential real estate sector has witnessed a slowdown in new project launches, with the number of units introduced in the first half of calendar year 2025 (H1 CY'25) falling to approximately 2.6 lakh, compared to around 3 lakh units during the same period last year.
This represents a decline of nearly 5 per cent, signaling a more cautious approach by developers amid evolving market dynamics.
"The number of units launched across India has been declining, from approximately 3 lakh units in H1 CY'24 to about 2.6 lakh units in H1 CY'25--a decline of around 5%," the report released by the Confederation of Real Estate Developers' Associations of India (CREDAI) in collaboration with CRE Matrix reveals.
The data of pan India market performance in the first half shows that Tier 1 cities across India recorded housing sales worth approximately Rs 3.6 lakh crore, marking a 9 per cent increase from Rs 3.3 lakh crore in H1 CY 2024.
The July edition of CREDAI's India Housing Report shows that the the National Capital Region (NCR) boosted its position, with its share of total revenue rising from 23 per cent to 26 per cent over the same period.
Luxury flats priced above Rs 3 crore accounted for 73 per cent of NCR's sales value, despite a modest volume of 25,000 units sold. The Mumbai Metropolitan Region (MMR) followed closely with a 23 per cent revenue share, recording a 9 per cent growth in sales value and 75,000 units sold, with a 16 per cent increase in average ticket size.
In contrast, Hyderabad's revenue market share dropped significantly--from 21 per cent in H2 CY'23 to just 16 per cent in H1 CY'25.
Meanwhile, on the positive side, the average ticket size of homes sold has increased sharply. The average ticket size climbed from Rs 1.13 crore in H2 CY23 to Rs 1.42 crore in H1 CY25, the data shows.
In the south, Chennai emerged as a standout performer, achieving a 23 per cent increase in sales value with 11,000 units sold and a 12 per cent rise in average ticket size. New launches in Chennai grew from 14,000 to 19,000 units, though the market share of homes below Rs 70 lakh dropped from 23 per cent to 17 per cent.
Bengaluru maintained steady growth with a 4 per cent increase in sales value and 30,000 units sold, supported by a 17 per cent rise in ticket size. However, the share of homes priced between Rs 70 lakh and Rs 1.5 crore declined from 38per cent to 32 per cent.
Hyderabad, while recording a modest 2 per cent increase in sales value, saw 11 per cent drop-in units sold (30,000 units) but a doubling of new launches from 23,000 to 42,000 units, indicating developer optimism despite slower absorption, the report added. (ANI)
(The above story is verified and authored by ANI staff, ANI is South Asia's leading multimedia news agency with over 100 bureaus in India, South Asia and across the globe. ANI brings the latest news on Politics and Current Affairs in India & around the World, Sports, Health, Fitness, Entertainment, & News. The views appearing in the above post do not reflect the opinions of LatestLY)