New Delhi: Demand for luxury homes stays muted as more than half of the high-end units launched in the past three years in over nine prime Indian residential markets have remain unsold, according to a report by PropTiger.com.Also Read - Maradu Flats Demolition Case: Kerala Govt Sanctions Rs 1 Crore For Rehabilitation of Residents
The data, available with Elara Technologies-owned real estate portal, shows of the 1,131 housing units, priced over Rs 7 crore and launched between December 2016 and December 2019, 577 units or 51 per cent were unsold as of January 2020.
Similarly, of the 3,656 units, priced between Rs 5 crore and Rs 7 crore and launched in the past three years, nearly 55 per cent are unsold.
In the Rs 3-5 crore price bracket, 56 per cent of the 8,503 units launched during this period are awaiting buyers.
According to PropTiger.com report, Mumbai, the financial capital of India, has the highest number of unsold luxury units at 30,015, followed by Hyderabad (8,554) and Bengaluru (5,794).
Compared with 2017, new launches in the luxury segment declined in the most price brackets across the nine markets.
“In the Rs 1-3 crore price bracket, for example, 29,775 units were launched in 2019 against 29,996 homes in 2018. In the Rs 5-7 crore price bracket, only 859 units were launched last year against 1,536 homes in 2018,” it said.
Similarly, in the Rs 7 crore plus range, only 34 units were launched in 2019 against 542 homes in 2018. However, in the Rs 3-5 crore bracket, new launches increased from 2,675 in 2018 to 3,092 last year.
The study covered cities like Ahmedabad, including Gandhinagar, Bengaluru, Chennai, Gurugram (including Bhiwadi, Dharuhera and Sohna), Hyderabad, Kolkata, Mumbai (including Navi Mumbai and Thane), Pune and Noida (including Greater Noida, Noida Extension and Yamuna Expressway).
“The demand for luxury homes fell post-demonetisation, and the trend has not changed much. The coronavirus pandemic is likely to further impact demand across the residential realty sector in the first half of FY21, including luxury housing,” said Dhruv Agarwala, Group CEO, PropTiger.com.
He, however, expects renewed interest from NRIs in the luxury housing segment if the value of the Indian rupee continues to fall.
“The Indian currency recently fell beyond Rs 77 against the US dollar. This puts NRI homebuyers in an advantageous position as they would find buying luxury homes a relatively more attractive investment option than before,” he said.