As of Q1 2022-end, the total available stock of affordable housing (<INR 40 lakh) in the top 7 cities is approx. 1,86,150 units; 2,34,600 units at Q1 2020-end
Chennai, Pune & MMR saw the highest supply decline of 52%, 33% & 27%, respectively
Supply of ultra-luxury homes (>INR 2.5 Cr) declined 5% in the same period – from approx. 41,750 units in Q1 2020-end to approx. 39,810 units by Q1 2022-end; MMR & Kolkata shed maximum ultra-luxury stock of 16% & 15%, respectively
Mid segment housing saw a 4% decline – from 1,97,880 units in Q1 2020-end to 1,89,310 units by Q1 2022-end
Premium & luxury homes (INR 80 lakh to INR 2.5 Cr) unsold stock increased in the same period
Mumbai, 19 April 2022: While the new supply of affordable housing has been shrinking over the last two pandemic years, demand remains healthy. ANAROCK data reveals that out of the total unsold stock across the top 7 cities, affordable housing inventory saw the most significant decline of 21% – from 2,34,600 units by Q1 2020-end to 1,86,150 units by Q1 2022-end.
Reviewing the overall performance of the Indian residential real estate market in 2021 shows a definite upswing. Between Jan - Sep 2021, 1.63 lakh units of new residential supply were added across the top 7 Indian cities - 27% higher than 2020 full year supply - and 1.45 lakh units were sold - 5% higher than in the whole of 2020.
The quality of the site office can lead to better per-unit revenue for the developer. Even in new markets, the combination of a developer's brand and an excellent site/sales office can deliver adequate sales numbers even without show flats.
Predictably, the secondary sales or resale housing market proved far more vulnerable to demonetization than the primary market. This segment, along with luxury housing, historically drew the bulk of 'cash components'.
Key South-Central Mumbai localities have shed at least 10% of their total unsold inventory. As many as 10,700 units are currently available for sale in this region; in the same period a year ago, approx. 11,900 units were available for sale.
ANAROCK also saw continued interest in the super-luxury market of INR 10 Cr+ inventory, which in total contributed to almost 10% of the sales value so far. While the luxury market of INR 2.5+ Cr inventory has contributed almost 20% of the sales value so far.
Of 36,260 units launched in Q2 2021 in the top 7 cities, the premium segment (priced b/w INR 80 lakh to INR 1.5 Cr) had the highest share (approx. 13,130 units); mid-segment (INR 40-80 lakh) had a 32% share (nearly 11,760 units)
Hyderabad, Bengaluru & Chennai together comprised a 72% share of total new premium supply in the second quarter
Covid-19 dents affordable housing supply share – reduced to 20% (approx. 7,230 units) as of Q2 2021
In the pre-COVID-19 period, affordable housing supply share dominated; post-pandemic, share drops dramatically from 40% in 2019 to 30% in 2020 – at 20% in Q2 2021
Developers strategically following trends – buyers of affordable homes most affected economically by COVID-19; high unsold affordable housing stock another concern at 33% of total 6.54 lakh unsold units in top 7 cities by Q2 2021-end
The pandemic has significantly altered previously dominant trends in the Indian residential market. Notably, it has dented the overall new affordable housing supply share across the top 7 cities. Latest ANAROCK research indicates that out of the total new launches of approx.
Fractional ownership platforms attract investors interested in not just building future income (in case of commercial or even residential properties) but also in accessing the property (resorts or vacation homes) personally for a specific period