Top Cities Witness 50,000+ New Residential Property Launches in Q4, 2021

Despite the harsh second wave of COVID 19, India had over 1.7 lakh new residential properties launched across its six cities in 2021. Square Yards research takes you through a detailed analysis of the residential units launched in the top cities (Gurugram, Noida, MMR, Pune, Bengaluru and Hyderabad) at a quarterly as well as a zonal level. 

Land is intrinsic to property. With the growing population of India, new residential projects have become imminent. So, even though lockdowns and curfews have stopped the general populace from stepping out of their homes, it did not halt the launch of new residential properties across the six major cities in our country. 

From NCR in the north to MMR and Pune in the West and Bengaluru and Hyderabad in the South, 2021 witnessed a new high in residential property launches, augmenting home buying opportunities for all citizens.

In this blog, we help you peek into the performance of each of the top six cities and their major residential zones with respect to the number of new residential units added to the total inventory in 2021. 

Note: This research is based on property listings at squareyards.com, encompassing the six major metropolia in India: MMR, Pune, Gurugram, Noida, Bengaluru and Hyderabad.  

Annual Analysis between Quarters: An Overview

As per Square Yards research, over 1.7 lakh residential properties were launched in 2021 across the six metropolitan areas of Bengaluru, Noida, Gurugram, Hyderabad, MMR and Pune. Given the grim presence of the pandemic, it is a significant real estate statistic. 

However, when Square Yards research took a quarter-wise approach to analyse this data, we found disparities in the number of properties launched in each of them. 

While Q1 (27 percent), Q3 and Q4 (28 percent) registered almost an equal share of the total new residential launches across these six cities in 2021, Q2 inevitably grabbed our attention. 

With only 17 percent of the total new residential launches in 2021, the second quarter (Q2) reflected the lowest number of project launches in the year. However, this is not an unexpected dip, provided that COVID 19 spiked to unprecedented proportions between April and June, 2021. Lockdowns and curfews, therefore, halted not only property search but also new property launches on a major scale. 

How badly the lockdown had impacted the real estate sector became apparent in Q3 and Q4 when the number of project launches bounced back and peaked in the third and fourth quarter. With the gradual decline in the incidence of COVID cases, Q4, 2021 recorded almost 30 percent of the total new launches in 2021.

The findings of squareyards.com also indicate that out of the six cities, Hyderabad (24 percent) and MMR (26 percent) had the biggest contributions towards the new residential stock that was added to the market in 2021, with over 43,000 and 47,000 new property launches, respectively.

City-Wise Analysis of New Residential Property Launches in 2021

Let’s take a look at the city-wise split of the new residential property launches in 2021 below. 

Bengaluru

According to Square Yards data, Bengaluru witnessed about 28,119 new residential unit launches in 2021. This accounted for 16 percent of the total residential properties launched in India.  

*Total new residential properties launched in Bengaluru: 28,119 

A quarterly analysis of the new project launch numbers for the city revealed a consistent market performed throughout the year. Barring Q2, which noted a marginal dip of 3 percent, all quarters recorded an almost equal number of new launches. This highlighted the resilience of the city’s housing sector in the face of the pandemic and gives hope for a better future. 

On diving deep into a regional analysis of East, West, North and South Bengaluru, we further discovered that East and North Bengaluru bore the highest 37 percent and 35 percent of new residential property launches, respectively. On the flip side, West Bengaluru only showed six percent of new residential property launches. 

This huge difference between East, North and West Bengaluru’s residential property launches is mostly because of their respective location types. A dynamic housing market, East Bengaluru is touted as one of the most significant IT clusters in the city, boasting multiple amenities, commercial hubs and a robust network via Sarjapur Road and Whitefield Hoskote Road. Thus, a consistent housing demand in the zone ensures a steady flow of new residential projects each year.

Additionally, North Bengaluru is one of the fastest-growing zones in Bengaluru, dotted with multiple amenities, including Yeshwantpur Metro Station and Police Station, IISc Medical Centre, Indian Institute of Science, etc. Easier availability of land parcels has also ensured a steady developer interest in the zone over the years.     

West Bengaluru, on the other hand, is an industrial hub. So, even though the locality is multi-facilitated with schools, hospitals and offices, it has minimal scope for residential projects.     

Noida

A National Capital Region (NCR), Noida contributed a total of five percent in new residential property launches in 2021. There were more than 9,000 new residential units launched in the city across five major zones, including Noida Expressway, Noida Central, Yamuna Expressway and Noida Extension. 

*Total new residential properties launched in Noida: 9,679

In the first quarter of 2021, Noida had about 28 percent residential property launches. However, it soon dipped by three percent in the second quarter and further dwindled by four percent in the third quarter. 

Even though it strived to recuperate and went up by four percent again in the last quarter of 2021, it could not go beyond the 28 percent mark that  was previously witnessed in the first quarter of the year. 

This can be attributed to not only the rising COVID 19 cases between April and September but also the lockdowns and curfews prevalent at that time, indicating that even if property launches were possible, their further development and timely delivery would have been difficult, nullifying the marketing prospects of new projects.    

As per Square Yards research, we have also found that there were very negligible number of  residential property launches in Noida Central and Yamuna Expressway during the third and fourth quarters of 2021.   

Even though Noida Extension had about 33 percent of property launches, Noida Expressway stole the show with the highest 55 percent of residential property launches in 2021, with the number going up to 5,346. 

While the emerging micro-markets seem to be one of the major catalysts for its growth, the expansion of the metro via the Aqua line also seems to have fanned the housing demand in this location. 

Gurugram

Although Gurgaon displayed a steady growth in its quarterly numbers for new residential property launches in 2021, its contribution towards the total number of units launched across the top six cities stood at a meagre seven percent. This is because, out of the four quarters of 2021, the city had demonstrated a significant number of property launches only in the third quarter. 

With 5,046 new residential properties launched in the third quarter of 2021, it accounted for a whopping 40 percent of the annual residential property launches in the city. This data becomes all the more significant because of its huge leap from 8 percent in the second quarter of the year, covering a gaping difference of 32 percent.    

*Total new residential properties launched in Gurgaon: 12,481

As per Square Yards research, the best performing zone in Gurugram during 2021 has been New Gurugram.  With over 7000 new residential property launches, it accounted for about 56 percent of the total new residential properties launched in the city in the previous year. 

Unlike the other zones of the city, New Gurgaon is a rapidly developing area with emerging micro markets and newly growing sectors of 76 to 95. So, one of the key reasons for such a surge in new residential property launches in this zone in 2021 could have been a heightened availability of land.    

Additionally, what is fuelling the demand for properties in this zone is a sound juxtaposition of nature and urban life along with robust connectivity, affordable property prices, and increasing incidence of amenities, including schools, hospitals, shopping malls, etc. 

Hyderabad

With 24 percent share, Hyderabad was second only to  MMR with respect to the total number of new property launches in 2021. It formed more than 20 percent of the total share of the new launches in each quarter surpassing even MMR in the second quarter with 29 percent share. .The quarterly analysis of the launches within the city showed a steady increase in the numbers post Q2 with Q4 recording nearly 30 percent of the total launches in the city last year.  

*Total new residential properties launched in Hyderabad: 43,416

A sharp dip of 5 percent in the second quarter was the only blip in the city’s performance as far as new residential launches were concerned.  

When looking into the city’s significant zones, namely Central, North, West, South and East Hyderabad, we found that West Hyderabad had the highest number of new residential property launches. 

It accounted for a significant chunk of 57 percent of the total residential properties launched in the city in 2021. Central and South Hyderabad, however, lingered at four and five percent respectively.   

Witnessing exponential growth, West Hyderabad has already emerged as a commercial hub due to the strong presence of IT and SEZs. The zone not only offers close proximity to workplaces but robust connectivity with the rest of the city, signalling an attractive location for  prospective homebuyers. The quick access to amenities is also an added advantage for residents in this area. 

Contrary to this, Central Hyderabad is an already developed and bustling area where the scope of building new properties is minimal. However, North Hyderabad comes under the old city area. Owing to its current development, the area is not as advanced as its neighbouring zones, therefore, housing is also not up to the mark.  

MMR

MMR (Mumbai Metropolitan Area) comprises the seven zones of Mumbai Central Suburbs, Mumbai Western Suburbs, Navi Mumbai, Mira Road and Beyond, Mumbai South, Thane, and Mumbai Harbour. 

Accounting for 26 percent (47,147) of the total new residential properties launched amongst the six top cities,  MMR recorded the highest residential property launches in 2021. 

*Total new residential properties launched in MMR: 47,147

While more than a quarter of the total new residential property launches of 2021 happened in the first quarter,  the numbers dipped by 12 percent in the second quarter with only over 6,480 new property launches. 

However, like Hyderabad and Pune, the new residential property launches in MMR jumped by an impressive 15 percent in the third quarter and peaked at 31 percent in the fourth quarter.     

Out of the seven MMR zones, Thane contributed to the highest number of new residential property launches in 2021. 

Accounting for 25 percent of the new residential properties launched in MMR in 2021, Thane is an all-inclusive zone offering a plethora of amenities, including schools, marketplaces, and excellent connectivity. The presence of lakes and greenery further makes it an ideal location for prospective buyers, fueling demand.   

Pune

A close neighbour to MMR, Pune houses six major zones in the city, including Pimpri Chinchwad, East, North, West, South and Central Pune. 

*Total new residential properties launched in Pune: 37,130

Known as the IT hub of India, Pune attracts the  youth from different corners of the country. Like Delhi and Bengaluru, students and professionals go to Pune to study or work. Therefore, a consistent housing demand is quite obvious.

However, when looking into the data from Square Yards research, we found that even though the first quarter witnessed 33 percent of total new residential property launches in the city, it quickly dwindled in the second quarter creating a gaping difference of 20 percent. 

Despite launching more than 10,000 properties in the third and fourth quarter, the data further indicated its struggle to reach back to its first-quarter mark at 33 percent.   

Out of the six zones, with 20 percent, East Pune had registered the highest number of residential property launches in 2021, while Central Pune had the lowest at two percent.  

This is mainly because East Pune is a rising IT hub, offering excellent connectivity with not only the neighbouring IT parks but also the railway station and the airport. The availability of land further provided opportunities for real estate development. The transformation of its roads into six-way lanes also seems to be an added advantage. 

Final Thoughts

Apart from COVID 19 being a primary concern for real estate development, our research at Square Yards indicates that the availability of land is also one of the crucial influencing factors. It was evident that new developing zones or sectors across all cities that had ample land available for development were the epicentres for new project launches. 

On the flip side, the growing development of residential properties in certain areas juxtaposing urban and natural landscapes also suggest the preference of current homebuyers. What can be estimated from the trend is that escaping the hustle of the city may not be just for vacations anymore.