Kolkata’s new launches recorded a massive drop of 85% during the period with merely 1,000 units being launched in Q1 2019.
Category: ANAROCK
- Overall unsold inventory of luxury homes (priced INR 1.5 cr – INR 2.5 cr) declines to 42,650 units in Q1 2019 from 48,300 units in Q1 2018
- MMR currently accounts for maximum share at 56%
- Bangalore sees 49%, Kolkata 37% yearly decline in total unsold ultra-luxury homes
- NCR and MMR each saw a 7% decline in pent-up luxury inventory during the year
- Mid-segment (INR 40 lakh – INR 80 lakh) saw max. reduction with 14%; affordable (<INR 40 lakh) saw a 3% rise in total unsold stock in this period
Anuj Puri, Chairman – ANAROCK Property Consultants
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.
If we compare commercial real estate yields to those for residential properties, it becomes evident why many HNI NRIs prefer investing in the former.
Although investors are eyeing commercial properties and warehousing, the inherent demand for housing in India is beyond question.
Shajai Jacob, CEO – GCC (Middle East) – ANAROCK Property Consultants
Just like resident Indians, NRIs can invest in any number of properties in India and are also eligible to avail of home loans for as many properties as they like.
Of course, while there is no cap on the number of properties for which an NRI can take home loans for, repayment capacity must always be factored in.
Over-leveraging is never a good idea and regardless of what viewpoint a bank takes, NRIs must do their own repayment capacity calculations.
In India, most banks and non-banking financial institutions offer home loans to NRIs. However, the tenure of the home loan may vary, and the rate of interest is usually higher for NRIs.
Loan Tenure and Rate of Interest
An NRI usually has to pay a higher rate of interest than resident Indians. The tenure for a home loan to an NRI usually ranges between 5 to 20 years – only in select cases can it go up to 30 years for salaried professionals.
Most banks determine the loan amount eligibility of NRI borrowers based on their income and credit history.
The availability of land parcels in some micro markets in South-Central Mumbai has led to large-scale development of luxury homes and commercial spaces.
India's leading real estate services firm, ANAROCK Property Consultants, announced the launch of its office and operations in Lucknow.
ANAROCK’s most recent data reveals that residential inventory in the top 7 cities overhang plunged to 30 months' worth in Q1 2019.
Several localities in Chennai now offer homebuyers the option to walk or cycle to work or significantly reduce their daily commute time.
- Ahmedabad, Jaipur, Chandigarh, Nashik & Kochi top favourite among Tier 2 & 3 destinations
- Bangalore 2nd-most preferred investment destination with 21% votes in favour, followed by Pune with 18%
- For over 30% NRIs, Bangalore is the hot favourite investment hub
- Low property prices coupled with improved infrastructure facilities in Tier 2 & 3 cities the primary investment magnets
Anuj Puri, Chairman – ANAROCK Property Consultants
The quintessential Indian’s yen for investing in real estate continues. The latest data vouchsafes the visible return of investor sentiment for real estate, and the enthusiasm is not limited to traditional property hotspots of the big cities.
ANAROCK’s recent second edition of its Consumer Sentiment Survey confirms that investors are equally – if not more – upbeat on the prospects that India’s Tier 2 & 3 cities offer.
Lack of affordability in the larger cities is the primary hurdle to the largest investor base, and property investors are now looking at smaller towns and cities.
However, their increasing bullishness on Tier 2 &