The luxury housing sector, where investors are accustomed to increasing demand, suffers from a crisis due to market uncertainty as the real estate sector is in recession, and now relies heavily on sales to end users.
About Rs. 1.59 lakh crore of unsold luxury housing shares as per Real Estate News remained at the end of 2019, which contributed about 34% to the total value of all unsold homes in the main residential markets.
Even Anuj Puri, President of Anarok Real Estate Consulting, said that even after 3 years of demonizing, despite having the lowest percentage of total unsold shares in the seven major cities, it is still the worst performance of all budget categories. Luxury unsold stocks increased 10% from the previous year in the seven major cities at the end of 2019 .
Anarok Research said in a report that there were 89,200 units of unsold luxury shares (house prices at 1.5 crore or more) at the end of 2019 compared to 81,290 units in 2018.
“Homebuyers have become price sensitive. The joint managing director of Vista Spaces, Raghuveer Veeramachaneni, said that there has been a decrease in the size of the entrances from about 30% to 50% and the size of apartments by 10%.
The company, which has focused on luxury homes centered in the city, is reformulating some of these projects. The largest increase in stocks was observed in Hyderabad and Pune, at 58% and 56%, respectively. These cities followed Chennai with 33% and the National Capital Region with 17%. Shares of luxury homes rose 6% in Bangalore and 2% in Mumbai, according to the report. Kolkata was the only city to see a 10% drop in inventories, as construction firms restricted the new supply.
Real estate developers have drastically reduced supply pipelines, mainly due to the absence of investors in this sector. We focus on middle income housing because demand is high in this sector. “We don’t want to make more luxury homes and only sell unsold shares,” said the CEO of a Bengaluru-listed company, which did not want to be named.
For the housing sector, 2019 was a year without events in terms of sales growth and investor interest. The feeling remained moderate, as it remained almost exclusively in end-user activity focused on mobile homes or almost complete. However, developers of the brands acquired the floor, and some of the listed companies got exceptionally good results in sales growth and revenue.
Picture Source : RealityNXT
Also Read :
Property News | Co-Working Spaces-Great Success of Real Estate |
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