Housing Boom: Strong Demand Pushes Developers to Fast-Track New Launches
Jefferies reports a surge in housing demand, pushing major developers like DLF and Godrej to accelerate project launches in H2 FY27.
The Indian real estate sector is gearing up for a massive surge in activity. Driven by housing demand India and robust sales figures from the September quarter, developers are now preparing to accelerate the launch of new projects in the second half of the current financial year (H2 FY27), according to a recent report by Jefferies.
Value Growth Outpaces Volume
Data cited by Jefferies reveals a telling trend in India's top seven cities during the July-September 2026 period. While the total sales value of residential properties jumped by an estimated 17-20 per cent year-on-year, the growth in sales by area was more modest, increasing by only 6-8 per cent.
This gap suggests that the growth is being driven primarily by higher property prices and improved realisation per unit rather than a massive increase in the number of units sold. In fact, the number of apartments sold remained largely flat over the last three months, even as blended price realisation climbed by approximately 10 per cent year-on-year.
Inventory Dip Sets Stage for New Projects
Despite the strong sales, new project launches remained flat year-on-year by area, a trend attributed partly to the delayed festive season in September. However, the tide is expected to turn starting from the December quarter. Strong sales of existing projects have effectively lowered inventory levels, creating the perfect window for developers to introduce new offerings.
"Sustenance sales have been very strong, lowering inventory, and launch momentum is strong from the December quarter onward," the Jefferies report stated.
Major Players Prepare for a Big Push
The report predicts that the second half of FY27 will see sales growth exceeding 20 per cent for several major listed developers, following a quieter first half. Some of the industry giants are planning aggressive expansions:
- Godrej Properties: Expected to double its launch pipeline in the second half, with estimated pre-sales of over Rs 120 billion in the December quarter—a year-on-year growth of about 50 per cent.
- Lodha: Planning a massive leap in launches, with projects worth Rs 191 billion slated for the second half, compared to just Rs 41 billion in the first half.
- Prestige Estates: Anticipated to have a robust launch pipeline focusing on the Mumbai region and the National Capital Region (NCR) during the December quarter and early fourth quarter.
- DLF: Moving forward with its Mumbai Phase-2 project and the development of an experience centre for its luxury housing segment.
Regional Trends and Market Health
Looking at the broader market, residential sales by area in the top seven cities have grown by about 6 per cent so far this year, while the sales value has risen by 12 per cent. Regional performance varied during the September quarter:
- NCR and Mumbai Metropolitan Region: Both saw volume growth exceed 10 per cent.
- Bengaluru: Sales remained largely flat.
Currently, the overall residential inventory level stands at approximately 18 months, based on the sales of the previous year. This figure is consistent with the five-year average. According to Jefferies, the synergy of healthy demand, reduced inventory, and a strong pipeline of upcoming launches is poised to bolster the residential real estate sector's performance through the remainder of FY27.