Snapped up like hot cakes by investors in previous years, luxury housing sales are still in the doldrums and hinging largely on end-user sales.
Even after three years of demonetization, despite having the lowest share of overall unsold stock in the top 7 cities, it remains the worst-performing of all budget categories.
Unsold luxury stock had increased by 10% y-o-y in the top 7 cities by 2019-end, reveals ANAROCK data. There were 89,200 units of unsold luxury stock (homes priced >INR 1.5 Crore) by 2019-end as against 81,290 units in 2018. Overall value of unsold luxury stock as on 2019 is estimated to be nearly INR 1.59 lakh crore, which is 34% of total unsold stock value.
Overall unsold housing stock across different budget segments stood at 6.48 lakh units worth INR 4.64 lakh crore in top 7 cities by 2019-end, declining by mere 4% since 2018. On breaking down the unsold stock at the two extreme ends of the budget spectrum, it emerges that affordable homes comprised the maximum share at 36% while luxury homes had the least, with less than 14% share. Luxury developers have severely curtailed the supply pipeline, primarily due to the absence of investors in this segment.
Mid-segment homes priced between INR 40-80 lakh shed the maximum unsold stock in 2019 by 15% - from nearly 2.27 lakh units in 2018 to approx. 2.02 lakh units in 2019-end.
Except Kolkata, all cities saw their unsold luxury stock increase in 2019:
Unsold Housing Stock: Budget-wise Performance
Of the total current unsold stock of nearly 6,48,400 units in the top 7 cities, affordable housing (priced <INR 40 lakh) comprised the maximum share at about 36%, followed by 31% in the mid-segment (INR 40-80 lakh). The share of unsold premium homes priced between INR 80 lakh and INR 1.5 Cr was 19%, while luxury accounted for 14%.
Anuj Puri, Chairman of ANAROCK Group is a highly respected industry authority and thought leader with 30 years' experience in leveraging Indian and global real estate opportunities. His company ANAROCK has a staff complement of over 1800 qualified and experienced professional, with offices in all major markets in the country, dedicated services in Dubai and a global footprint with over 80,000 preferred channel partners.