Unsold luxury housing stock declines 12% in one year

Among the top seven cities, MMR predictably accounted for the maximum share of unsold luxury housing stock at about 23,930 units in Q1 2019, while Kolkata had the least stock with around 770 units.

Bangalore led from the front, recording a whopping 49 percent decline in unsold luxury stock within a year – from 6,370 units in Q1 2018 to 3,260 units in Q1 2019 (ANAROCK’s recent Consumer Sentiment Survey confirms that nearly 31 percent NRIs currently prefer to invest in Bangalore).

Bangalore's notable luxury inventory-shedding performance was followed by Kolkata, which offloaded 37 percent of unsold luxury homes in the same period. On the other hand, Chennai and Hyderabad saw unsold luxury homes pile up further by 50 percent and 10 percent respectively.

The two most expensive markets of NCR and MMR each saw a 7 percent yearly decline, with NCR currently holding 'just' 9,590 unsold luxury units as on Q1 2019 and MMR still saddled with 23,930 unsold luxury units.

NCR saw its maximum housing sales in the mid-segment category, with overall unsold stock in this category reducing by 20 percent. This, in fact, is becoming a nation-wide trend.

Overall, unsold stock of mid-segment housing (priced between Rs 40 lakh and Rs 80 lakh) saw the maximum decline of 14 percent during this one-year period. As it stands now, unsold stock in this segment across the top seven cities is nearly 2.25 lakh units, second only to the affordable segment which accounts for 2.42 lakh unsold units.

Contrary to previous trends, the overall unsold stock in the affordable housing category (priced < Rs 40 lakhs) saw a 3 percent increase since Q1 2018. This jump in unsold stock is primarily because this segment saw the maximum new launches in 2018. It accounted for a 40 percent share of the total of 1,95,300 units launched in the year. That said, 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.