Luxury home sales lose appeal amid realty slump
The luxury housing segment, where investors used to drive demand, is in the doldrums because of uncertainties in the market with the real estate sector going through a downturn, and is now hinging largely on sales to end users. Around Rs 1.59 lakh crore worth of luxury housing stocks remained unsold at the end of 2019, contributing nearly 34% to the total value of all unsold homes across top residential markets.
“Even after three years of demonetisation, despite having the lowest share of overall unsold stock in the top seven cities, it remains the worst-performing of all budget categories,” Anarock Property Consultants chairman Anuj Puri said. Unsold luxury stock increased 10% from a year earlier in the top seven cities by the end of 2019.
There were 89,200 units of unsold luxury stock (homes priced Rs 1.5 crore or more) by end-2019 as against 81,290 units in 2018, Anarock Research said in a report.