Fewer buyers for city luxury homes
Even three years after demonetisation, the luxury housing market is showing no signs of recovery in the country. The demand has declined across the country because of risk-averseness of investors,
Of the top seven cities surveyed by Anarock Research, Hyderabad has recorded the highest jump in unsold luxury stock at
58 per cent.
The number of unsold luxury housing units in Hyderabad has risen from
3,000 in 2018 to 4,740 by
2019 — a 58 per cent jump. Pune comes second with a 56 per cent jump in the unsold luxury housing units during the period. In Pune, the stock increased from 2,750 units in 2018 to
4,290 units in 2019. The unsold luxury stock increased by 33 per cent in Chennai, 17 per cent in Delhi-NCR, six per cent in Bengaluru, and two per cent in Mumbai.
Kolkata, in sharp contrast to other cities, saw a
10 per cent decline in its unsold luxury stock, from
2,265 units as on 2018-end to 2,050 units by 2019.
The luxury housing had seen demand from investors plummetting after the Central government banned high value notes in November 2016 and the market has not recovered eversince.
“Even after three years of demonetisation, despite having the lowest share of overall unsold stock in the top 7 cities, it remains the worst-performing of all budget categories,” said Anuj Puri, the chairman of Anarock Property Consultants.
According to Anarock data, the unsold luxury stock had increased by 10 per cent year-on-year in the top seven cities by
2019-end.
“There were 89,200 units of unsold luxury stock (homes priced over `1.5 crore) by the end of 2019 as against 81,290 units in
2018 end. Overall value of unsold luxury stock as on
2019 is estimated to be nearly `1.59 lakh crore, which is 34 per cent of total unsold stock value,” Mr Puri said.
Overall unsold housing stock across different budget segments stood at
6.48 lakh units worth `4.64 lakh crore in top seven cities by 2019-end, declining by mere four per cent since 2018.