Over the past three years, property prices have skyrocketed in India which has made homeownership a distant dream for many buyers. In Delhi-NCR, the price of a 2BHK flat has crossed Rs 1 crore in most prime locations, pushing properties out of budget for several buyers. As a result, ready-to-move-in homes are no longer the first choice for many buyers. Instead, buyers are now turning towards newly launched projects which offer more affordable options.
One of the key reasons for this shift is the strict implementation of the Real Estate Regulatory Authority (RERA). According to Dinesh Gupta, Secretary of CREDAI Western UP, before RERA, homebuyers preferred ready-to-move properties due to irregularities in the real estate sector. However, with greater transparency and accountability, trust in under-construction and newly launched projects has significantly increased. This has led to a rise in demand for under-construction properties, as buyers feel more secure investing in them.
Soaring demand for new projects
A report by real estate consultancy firm ANAROCK reveals that in 2024, over 42% of the 4.60 lakh homes sold were from newly launched projects. This is the highest demand seen since 2019, when 2.61 lakh homes were sold in new projects.
The trend has been consistently growing:
- 2020: 28% of the 1.38 lakh homes sold were from new projects.
- 2021: This figure rose to 34% of 2.37 lakh homes.
- 2022: 36% of 3.65 lakh homes sold were newly launched.
- 2023: 40% of 4.77 lakh homes were from new projects.
This shows that the new residential projects are gaining traction among homebuyers once again.
Freedom to choose ideal flat
Another key factor driving interest in new projects is the flexibility to choose the preferred unit. According to Himanshu Garg, Director of RG Group, after the COVID-19 pandemic, real estate developers have adapted their construction technology and designs to cater to market needs. "New projects are being developed with a focus on spacious apartments, particularly 3BHK units, which are in high demand. Buyers now have the advantage of selecting their preferred layout, floor, and amenities -- something that may not always be possible in ready-to-move flats," he added.
Financial relief for homebuyers
Investing in a new project also offers financial benefits. Pankaj Kumar Jain, Director of KW Group, stated that developers introduce flexible payment plans in newly launched projects, making it easier for buyers to manage finances. Additionally, discounts and incentives help buyers save significantly. Experts suggest that investing early in a project’s launch phase is the best time to get maximum benefits, he added.
According to Suresh Garg, CMD of Nirala World, real estate developers are now focusing on timely project completion, quality construction, and modern amenities to meet changing buyer expectations. Developers are ensuring that projects are delivered on schedule, maintaining high-quality standards, which has further boosted buyer confidence.
Changing buyer preferences: Demand for modern homes
The preferences of today's homebuyers have evolved. According to Shailendra Sharma, MD of Renox Group, buyers now look for homes that offer luxury, modern designs, and Vastu-compliant features. Developers are designing new projects to align with these expectations, making newly launched properties more attractive than ready-to-move homes.
Lt. Col. (Retd.) Ashwani Nagpal, CEO of Diligent Builders, emphasised that new projects provide greater flexibility, which is often lacking in older properties. While delays in construction had previously pushed buyers towards ready-to-move homes, a more structured and transparent real estate market has revived the demand for new projects. So, it can be said that with rising prices, flexible payment options, and evolving buyer preferences, newly launched residential projects are now becoming the first choice for homebuyers across India.