3) Unsold inventory drops for 3rd quarter

At the end of September 2024, unsold inventory stood at over 10 lakh housing units across the eight major cities, with MMR accounting for a majority at about 40% share. The unsold units in Hyderabad saw a modest dip on a sequential basis despite a yearly increase of about 28%.

"Developers are being cautious with new launches. They are realigning their strategies by assessing and identifying the appropriate target audience in high-demand pockets," says Vimal Nadar, senior director and head of research, Colliers India.

Santosh Agarwal, CFO and executive director of realty firm Alphacorp, says there is a gradual reduction in new launches across top cities projects, with developers reassessing their strategies to meet evolving market dynamics. "The luxury segment remains dominant, but developers are exercising caution due to rising construction costs, regulatory compliance, and demand consolidation. We view this as a positive trend that prioritises quality over quantity, ensuring sustainable growth and long-term value creation for homebuyers."

Although new launches have moderated in the affordable housing segment, developers have stepped up their offerings in luxury and ultra-luxury segments, which has led to price hikes for spacious units, says the CREDAI–Colliers-Liases report.

Yash Garg, director of real estate developer M3M Noida, says the deliberate and precisely calculated shift in new launches underscores a more strategic, demand-driven approach. "This recalibration is not a retreat but a refinement, reflecting a commitment through rising land values, meticulous regulatory alignment, and an unwavering focus on premium quality and timely delivery." Far from signalling a slowdown, it reinforces the leadership of the luxury segment, he adds.

Although unsold inventory levels remain high, they continue to drop. Q3 saw the third consecutive quarter in unsold inventory, with 7 out of 8 cities seeing a dip in unsold inventory levels. At 13%, Pune saw the highest decline in unsold inventory levels annually. It was the 5th consecutive drop in inventory levels for the city.

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