The slowdown in Indian residential real estate over the last few years caused most high net-worth individuals (HNIs) to shun luxury housing and look at other investments within or outside real estate. However, ANAROCK’s latest study indicates that HNIs are now using the tail end of the slowdown in India’s luxury residential market to their advantage.
Stagnant prices and best-buy deals have brought back some of the demand luxury homes, leading to a decline of 12% in this segment’s overall unsold stock in one year. To put it in numbers, the current unsold stock of luxury homes (priced between INR 1.5 cr to INR 2.5 cr) has reduced to approx. 42,650 units against approx. 48,300 units as on Q1 2018.
Typically, the investment portfolios of HNIs and UHNIs have about 30-35% of the total investments in real estate. That said, the majority of HNIs and UHNIs who have triggered this reduction trend are end-users who perceive that luxury housing prices have bottomed out. Developers are also offering attractive deals and further discounts to clear their unsold luxury stock.
- Among the top 7 cities, MMR predictably accounted for the maximum share of unsold luxury housing stock at about 23,930 units in Q1 2019, while Kolkata had the least stock with around 770 units.
- Bangalore led from the front, recording a whopping 49% decline in unsold luxury stock within a year – from 6,370 units in Q1 2018 to 3,260 units in Q1 2019 (ANAROCK’s recent Consumer Sentiment Survey confirms that nearly 31% NRIs currently prefer to invest in Bangalore).
- Bangalore’s notable luxury inventory-shedding performance was followed by Kolkata, which offloaded 37% of unsold luxury homes in the same period. On the other hand, Chennai and Hyderabad saw unsold luxury homes pile up further by 50% and 10% respectively.
- The two most expensive markets of NCR and MMR each saw a 7% yearly decline, with NCR currently holding ‘just’ 9,590 unsold luxury units as on Q1 2019 and MMR still saddled with 23,930 unsold luxury units.
NCR saw its maximum housing sales in the mid-segment category, with overall unsold stock in this category reducing by 20%. This, in fact, is becoming a nation-wide trend.
Mid-segment Sees Highest Reduction in Unsold Inventory
Overall, unsold stock of mid-segment housing (priced between INR 40 lakh and INR 80 lakh) saw the maximum decline of 14% during this one-year period. As it stands now, unsold stock in this segment across the top 7 cities is nearly 2.25 lakh units, second only to the affordable segment which accounts for 2.42 lakh unsold units.
Contrary to previous trends, the overall unsold stock in the affordable housing category (priced <INR 40 lakhs) saw a 3% increase since Q1 2018. This jump in unsold stock is primarily because this segment saw the maximum new launches in 2018. It accounted for a 40% share of the total of 1,95,300 units launched in the year. That said, with more and more buyers looking to buy affordable properties on account of several incentives such as lower GST rates, this unsold affordable stock is likely to reduce going forward.
Dandiya organised by Sushma Gp residents
Zirakpur, October 7, 2022: The residents of the Sushma Group actively contributed to the success of the Navratri festival by...
Brookfield Properties plants over 3000 trees under the ‘Forest of Hope’ Initiative
October 7, 2022: Brookfield Properties, planted over 3000 trees under their ‘Forest of Hope’ initiative in Bengaluru and Delhi-NCR. This...
MYRE Capital closes commercial property of Rs 70 crores in VTP, Bengaluru
Bengaluru & Mumbai, Thursday, October 06, 2022: MYRE Capital, has successfully closed the second offering in Vaishnavi Tech Park (VTP),...
Mahindra Lifespaces, Actis in JV to develop industrial, logistics real estate across India
New Delhi, October 6, 2022: Mahindra Lifespace Developers Limited, on Thursday announced that it has entered into an agreement with...
Flex spaces will account for 20% market share of the total office leasing by end of 2022: research report by Savills India
October 6, 2022: Flex spaces across India’s six major cities are set to witness a new peak in terms of...
Danube Properties’ Dh525 million Opalz sold out on the first day of launch
October 4, 2022: Danube Properties, the UAE-based affordable housing developer, said, its latest project Opalz, a twin-tower residential project with...
Developers Speak3 weeks ago
Festive season to spurt bookings: Experts
Developers Speak4 weeks ago
Chandni Chowk at the Centrepiece in tune with the wave of Commercialisation
News4 weeks ago
BHIVE receives Rs 240 cr commitments for its ₹ 400 cr Real Estate Fund
Report4 weeks ago
Private equity inflow in PropTech firms up 5% to $270 mn in H1 2022: Housing.com
Developers Speak4 weeks ago
With Flight Testing in MOPA Airport, spotlight turns to North Goa
Report4 weeks ago
Coworking share in office real estate up at 20% in H1 2022 from 6% in 2021: Report
Report3 weeks ago
Shop-cum-Office segment grows 30-40% in the past 12 months: 360 Realtors’ study
Events3 weeks ago
NAREDCO Maharashtra set to host real estate property expo, ‘HOMETHON’