Luxury Property Launches on downwards trajectory

Demand for luxury homes remains muted in India’s nine prime residential markets as more than half of such units launched in the past three years in these markets remain unsold, PropTiger.com data shows. The Elara Technologies-owned real estate portal, shows that a total of 1,131 housing units, priced over Rs 7 crore, were launched during the three year period between December 2016 and December 2019. Of these, 577 units or 51% remained unsold as of January 2020. Similarly, a total of 3,656 units, priced between Rs 5 crore and Rs 7 crore, were launched in these markets in the past three years. Nearly 55% of this stock remains unsold. Additionally, a total of 8,503 units, priced between Rs 3 crore and Rs 5 crore, were launched in these markets during this period, of which 56% stock remains unsold, data show. “Real estate in India has been under immense pressure because of an on-going demand slowdown. This has impacted the luxury housing segment. The demand for luxury homes fell post-demonetization, and that trend has not changed much since. The on-going crisis involving the coronavirus pandemic is likely to further impact demand across the residential real estate sector in H1 FY21, including luxury housing,” says Dhruv Agarwala, Group CEO, Housing.com, Makaan.com & PropTiger.com. In terms of absolute numbers, the financial capital of India, Mumbai, has the highest number of unsold luxury units (30,015), followed by India’s pharmaceutical capital Hyderabad (8,554) and the Silicon Valley of India, Bengaluru (5,794) in third place.