Chennai: Affordable housing witnessed a 3 per cent increase in unsold stock in Q1 2019, while mid-segment and luxury segment saw a 14 per cent 12 per cent decline in stocks.
At the end of the first quarter, the unsold stock in the affordable segment —units priced below Rs 40 lakh— rose 3 per cent y-o-y to 2.42 lakh units in top seven cities. This was contrary to the earlier trends in the segment.
According to Anuj Puri, chairman of Anarock Property Consultants, this segment saw the maximum new launches in 2018 and this led to a jump in unsold stocks. It accounted for a 40 per cent share of the total of 1,95,300 units launched in the year.
However, with more and more buyers looking to buy affordable properties on account of several incentives such as lower GST rates, this unsold affordable stock is likely to reduce going forward.
The mid-segment, which comprises units priced between Rs 40 lakh and Rs 80 lakh, witnessed the highest reduction in unsold stocks- 14 per cent. Unsold stock in this segment across the top 7 cities stood at nearly 2.25 lakh units at the end of Q1. The National Capital Region saw its maximum housing sales in the mid-segment category, with overall unsold stock in this category reducing by 20 per cent.
The luxury segment or units priced Rs 1.5 crore to Rs 2.5 crore, too saw a decline in unsold stocks by 12 per cent. The stock level of luxury homes reduced to around 42,650 units in Q1 2019 against 48,300 units in Q1 2018.
Stagnant prices and best-buy deals have brought back demand for luxury homes. The slowdown in Indian residential real estate over the last few years had forced most high net-worth individuals shun luxury housing and look at other investments within or outside real estate. However, HNIs are now using the tail end of the slowdown in India’s luxury residential market to their advantage, finds Anarock.
Bangalore recorded 49 per cent decline in unsold luxury stock within a year – from 6,370 units in Q1 2018 to 3,260 units in Q1 2019. The demand seems to be coming from NRI.
