• New supply of homes priced >INR 1.5 Cr stood at 16,100 units in H1 2019 against 5,240 units in H1 2017 (period immediately post DeMo)
  • In H1 2017, luxury supply in most cities fell to three-digit numbers; NCR & Pune saw minimal launches – merely 140 units collectively
  • Expensive markets MMR & NCR together comprise 59% share of new luxury stock in H1 2019 – 6,490 units & 3,030 units respectively
  • Over 9,940 units in H1 2019 added in price budget of INR 1.5 – 2.5 Cr, remaining 6,160 units added in >INR 2.5 Cr budget
  • Of the total 6.65 lakh unsold units in top 7 cities in Q2 2019, approx. 86,430 units are in the luxury category (priced >1.5 Cr)

Anuj Puri, Chairman – ANAROCK Property Consultants

Along with the resale homes market, luxury housing took the hardest hit after demonetization. The Government’s continued focus on affordable housing coupled with the surgical strike on high-value currency denominations in November 2016 took the sheen off luxury housing for two years in a row.

Santhosh Kumar, Vice Chairman – ANAROCK Property Consultants

  • Just 63,000 ready units currently benefit out of total 6.73 lakh units across top 7 cities
  • Nearly 22,000 ready unsold units completed before 2017 don’t benefit from new rule
  • 33% of 5.88 lakh unsold under-construction units in the luxury segment – 49% in MMR – will not benefit immediately 

Just when the real estate industry was preparing to give the budget a complete thumbs down, the finance minister sprung a surprise ‘bonanza’ for the sector in the last 10 minutes of his speech. Or so it seemed.

Without a doubt, affordable housing gained amidst what was essentially a mass-appeal budget. However, it was the extension of tax relaxation on notional rent for unsold inventory for another year that cheered developers.

However, under closer scrutiny, it is unlikely to benefit a majority of them as on date.

Anti-climax for developers

Basically,

Anuj Puri, Chairman – ANAROCK Property Consultants

With the revival in Indian residential real estate well underway, it is pertinent to turn our attention to which formats have been in high demand at every given juncture.

Such awareness is primarily useful from an investor’s point of view, but anyone who tracks Indian real estate out of purely academic interest cannot fail to be interested, either.

The Value Chain

Despite a lot of ambiguity attached to the term, affordable housing rules the roost today.

With the Government having a taken a sharp-focus policy approach to boosting this segment and employment market opening up once again, mass-housing makes more sense today than ever before.

Mid-income housing, which comprises of the 2/3BHK formats in not-so-remote locations, is also seeing a pickup in interest from buyers, with ready-to-move options in RERA-compliant projects by reputed developers selling well.

Luxury housing was one of the major losers after the demonetization move and has now taken an extreme back seat. However, there is one niche segment which still holds its own to a great extent.

Anuj Puri, Chairman – ANAROCK Property Consultants Pvt. Ltd.

Luxury housing in India is the proverbial sitting duck for target practice in the shooting gallery that is the Indian residential property sector.

Market pundits and the media never get tired of taking potshots at it, and claiming that this segment has got run out – even though Indian luxury housing is actually something of a newbie on the pitch and still has very long innings ahead of it.

Maybe the fact that there are a lot of wealthy people in a country with so much poverty strikes some as an aberration, rather than a reason for pride.