• 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.

  • 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.

  • Luxury supply increased by 29% since 2017
  • Of 12,090 units new luxury supply in 2018, MMR launched nearly 6,310
  • NCR – 2,650, Hyderabad – 1,585, Kolkata – 160; Pune saw least supply with less than 100 units

Prashant Thakur, Head – Research, ANAROCK Property Consultants

Catering to a very niche clientele and not the masses, luxury housing has evolved at a rapid pace in India. The nouveau riche (newly rich) prefer discreet opulence over the commonplace, and look for experiential luxury, both at a unit and project level.

From start-up founders to high-salaried professionals, high net-worth individuals are prompting developers who understand the luxury segment to think increasingly out of the box and deliver something unique and aspirational.

On the ‘other side of the fence’, affordable housing has taken centre-stage in India over the past 3-4 years, not only because of the massive demand for it but also due to the concerted efforts by the Government to cater to it. Against such a backdrop, there are rising speculations that luxury housing is losing its sheen to the affordable segment.