New Residential Projects in High Demand: Homebuyers Shift Focus from Ready-to-Move Flats – Here’s Why

New Residential Projects in High Demand: Homebuyers Shift Focus from Ready-to-Move Flats – Here’s Why

Increasing Prices, Liberal Payment Plans, and Evolving Buyer Sentiment Fuel Demand for New-Launch Residential Projects Against Ready-to-Move Flats.

In the last three years, the prices of properties have jumped through the roof in India, and homeownership has become an elusive dream for numerous buyers. In Delhi-NCR, even a 2BHK apartment’s price has breached Rs 1 crore in most of the top locations, making properties beyond the reach of many buyers. Therefore, ready-to-move homes are no longer the priority choice for many of them. Now, they are looking towards recently launched projects, which provide less expensive alternatives.

The Effect of RERA on Homebuyer Confidence

One of the primary reasons for the same is the stringent enforcement of the Real Estate Regulatory Authority (RERA). According to Dinesh Gupta, Secretary of CREDAI Western UP, homebuyers used to opt for ready-to-move flats in the absence of proper regulation in the realty sector. But with added transparency and accountability, there has been a marked increase in faith in new and under-construction launches. This has led to a boost in demand for under-construction flats, as the investors feel comfortable to invest in them.

Rocketing Demand for New Projects

As per a report by property consulting firm ANAROCK, over 42% of the 4.60 lakh residences sold in 2024 originated from new launches. This is the highest ever demand since 2019 when 2.61 lakh homes were sold in new projects. The trend has been rising steadily:

• 2020: 28% of the 1.38 lakh homes sold were new projects.
• 2021: The number went up to 34% of 2.37 lakh homes.
• 2022: 36% of 3.65 lakh houses sold were new launches.
• 2023: 40% of 4.77 lakh homes were from new projects. 

   

  This shows that new residential projects are gaining traction amongst buyers once again

  Freedom to Choose the Dream Flat

   

  Another topmost reason for the demand for new projects is the freedom to select the preferred unit.In line with Himanshu Garg, Director at RG Group, post-COVID-19, real estate builders have modified their construction technology and designs to meet market demands.

  “New schemes are being formulated with emphasis on large-sized apartments, especially 3BHK, which are in demand. Homebuyers now have the luxury of choosing their desired floor plan, floor, and facilities – something which may not be possible in case of ready-to-move flats,” he further stated. 

  Financial Relief for Homebuyers

  Investment in a new project also proves to be financially fruitful. KW Group Director Pankaj Kumar Jain said developers launch flexible payment plans in newly launched projects, which benefit buyers in managing money. Discounts and incentives also enable buyers to save considerably.

  Experts opine that investing early in the launch stage of a project is the best time to avail optimum benefits.Real estate developers are currently stressing timely completion of projects, high-quality construction, and contemporary amenities to live up to changing consumer expectations, as per Suresh Garg, CMD of Nirala World.

  Developers are delivering projects on time while keeping high standards, which has further increased consumer confidence. 

  Evolution of Buyer Preferences: Demand for Contemporary Homes

  Homebuyers’ tastes have changed. As MD of Renox Group, Shailendra Sharma, says, homebuyers are now on the lookout for houses that offer luxury, modern designs and Vastu-friendly features.

  Developers are planning new projects accordingly, so properties in recent launches are more appealing than ready-to-move homes.Lt. Col. (Retd.) Ashwani Nagpal, CEO, Diligent Builders, stressed that new projects offer more flexibility, which is usually missing in existing properties. Although construction delays had earlier led to buyers opting for ready-to-move-in homes, a better organized and transparent realty market has again made new projects attractive.

  With increasing prices, easier payment plans, and changing buyer sentiments, newly developed residential projects are now turning out to be the first priority of homebuyers all over India.