industry

New luxury housing launches in January-June triples in 2 years since demonetisation


MUMBAI: The government’s focus on affordable housing coupled with the demonetisation of high-value currency denominations in November 2016 had taken the sheen off luxury housing for the last two years in a row.

Given the sluggish demand for luxury properties, developers restricted new supply in this category across markets. While affordable and mid-segment housing sectors continued to dominate overall supply, the luxury segment too seems to be climbing back with rising supply of such apartments.

As many as 16,100 new units have been launched during the first half of 2019 in the luxury segment priced above Rs 1.5 crore across the top seven cities– up from 5,240 units in the first half of 2017. Effectively, new luxury housing supply has more than tripled since the first half of 2017 immediately after demonetization, data from ANAROCK‘s Property Consultants showed.

“In sharp contrast to the trend seen in previous years, when it was primarily investors who drove demand in luxury housing, this segment is almost completely end-user driven today. High Networth Individuals (HNI) from India and NRIs cashed in on the prolonged slowdown and the more or less stagnant prices and best-buy deals in their preferred cities,” said Anuj Puri, chairman, ANAROCK Property Consultants.

The first half of 2018 saw new luxury category supply increase 40% from the year ago to 7,350 units across these markets.

Predictably, Mumbai Metropolitan Region (MMR) and NCR dominated the new luxury supply accounting for 59% in overall share. This was followed by major southern cities of Bengaluru and Hyderabad which saw the launch of 2,210 and 2,070 units, respectively.

The budget range of Rs 1.5 crore – Rs 2.5 crore saw maximum launches with 9,940 units during this period. The remaining 6,610 units were launched in the higher price bracket of over Rs 2.5 crore upwards, the data showed.

In terms of unsold luxury housing inventory, as many as 86,430 units are piled up across the top seven cities as on June end – an annual decline of 2%. Of this, MMR alone has a 56% share, followed by NCR with 17,800 units.





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