Unsold Stock of Luxury Apartment has gone down by 12% since last year.

By Abhay Harish Shah, Realty Quarter

According to property consultant Anarock, stable rates created luxury homes more appealing, with unsold homes priced between Rs.1.5-2.5 crore has gone done by 12% in the past year. Indian residential property in recent years has slowed down, shunning luxury homes and considering further investments in or out of the real estate by most high net-worth individuals (HNIs).

“Our recent research shows that HNIs are now benefiting from the tail end of the slowdown of the luxurious housing industry,” said Anarock Chairman Anuj Puri.

The revival of demand for luxury homes was attributed to steady prices and attractive deals offered by cash-starved developers of real estate.

“To bring it in quotes, the present unsold stock of luxury apartments has decreased to about 42,650 units in Q1 2019 (price between Rs.1.5 crore to Rs 2.5 Crore), compared to 48,300 units, like in Q1 2018,” Puri said.

The highest proportion of the unsold luxury residential stock in March 2019 was found in the Mumbai Metropolitan Region (MMR) at approximately 23,930 units, whereas Kolkata had the least holdings with approximately 770 units.

In the first quarter of 2019, Bengaluru experienced a 49% reduction in the stock of unsold luxury apartment, from 6,370 units in the first quarter of 2018 to 3,260 units in the same quarter of 2019.

The stock of luxury homes in Kolkata fell by 37%, in Chennai by 50% and in Hyderabad by 10%. “The NCR’s (National Capital Region) and MMR two most costly markets saw a 7% decrease each year, with NCR keeping presently only 9,590 unsold luxury units, as at the first quarter of 2019, and with 23,930 unsold luxury units MMR still saddled,” stated the Report.

The unsold residential stock for a span of 1 year (Q1 2018 to Q1 2019) in the mid-segment housing, which ranged from Rs.40 to 80 lakh, has seen a peak decrease of 14% in the seven major towns. Affordable housing segment has 2.42 lakh unsold units.

The overall unsold stock in the affordable housing category (priced below Rs.40 lakh) has increased by 3% since Q1 of 2018, mainly because the maximum new launches in the new segment were achieved in 2018. It accounted for 40% of the 1,95,300 units launched during the year,” Anarock said.

The consultant stated that because of maximum demand in this segment driven by lower GST rate and small ticket-price would result in decreasing the unsold stocks in affordable housing.