On the other hand, Bengaluru posted a record fall of 49 per cent from 6,370 units of luxury homes in Q1 of 2018 to 3,260 units in Q1 of 2019, on the back of rising preference among NRIs to invest in the city.
Stagnant prices and best-buy deals have brought back some of the demand for luxury homes, leading to a decline of 12 per cent year-on-year (YoY) in the segment’s overall unsold stock in Q1 of 2019.
To put it in numbers, unsold stock of luxury homes, priced between Rs 1.5 crore and Rs 2.5 crore, fell roughly from 48,300 units as on Q1 of 2018 to approximately 42,650 units in Q1 of 2019.
However, despite a 7 per cent fall in inventory over last year, Mumbai Metropolitan Region still accounted for the highest share of unsold luxury housing stock in Q1 of 2019 at 23,930 units, as per the latest study by real estate consulting firm Anarock.
The other most expensive market, the NCR, saw a similar 7 per cent yearly decline, thereby holding 9,590 unsold luxury units as on the first quarter of 2019.
In terms of extent of decline, Bengaluru posted a record fall of 49 per cent from 6,370 units in Q1 of 2018 to 3,260 units in Q1 of 2019, on the back of rising preference among NRIs to invest in the city.
According to Anarock, high networth individuals (HNIs) and ultra-high networth individuals (UHNIs) have typically about 30-35 per cent of their total investments in real estate.
The second highest decline was recorded in Kolkata, which offloaded 37 per cent of unsold luxury homes, leading to the least amount of luxury housing inventory at around 770 units.
On the other hand, Chennai and Hyderabad saw unsold luxury homes pile up further by 50 per cent and 10 per cent, respectively.
In the affordable housing category, for units priced less than Rs 40 lakh, overall unsold stock in Q1 of 2019 saw a three per cent increase since Q1 of 2018.
The jump in unsold inventory in affordable housing segment came on the back of new launches in 2018, which accounted for a 40 per cent share of the total of 195,300 units launched in the year.
Image used for representation purpose only
Photograph: Kind courtesy, Lodha Group