Unsold inventory of homes priced above Rs 2.5 cr down, says Anarock

The number of unsold luxury homes fell the sharpest, 24%, in the Mumbai Metropolitan region

Owing to high demand for luxury homes in India, the stock of unsold houses worth Rs 2.5 crore each or more in India fell in the quarter that ended on March 31 as compared to the same period last year, data released by Anarock group on Thursday showed.

According to Anuj Puri, chairman of Anarock group, there is a one per cent fall in the unsold stock of luxury homes priced above Rs 2.5 crore across the top seven cities in India. It was the highest in Mumbai Metropolitan Region (MMR).

In MMR, there was a 24 per cent fall in the stock of these homes to 15,520 units in Q4FY23 from 20,480 units in Q4FY22.

"Luxury homes are driving housing sales across most cities since the first Covid-19 wave," says Puri. "The quest for more space - one of the defining characteristics of luxury homes - fuels most of this demand, which has helped developers to clear significant chunks of their unsold luxury stock."

The specific demand for luxury homes in the MMR region was also visible from the fact that during the same period, the overall unsold housing stock across all budget categories saw a yearly rise of 13 per cent from 177,560 units Q4FY22 to 200,540 units in Q4FY23.

The luxury segment was the only one to see a decline in the period.

Unsold stock of mid-segment homes, priced between Rs 40 and 80 lakh, in MMR saw the highest rise of 33 per cent in the year. Its stock rose from 40,245 units in Q4FY22 to 53,550 units in Q4FY23.

MMR's inventory of homes priced from Rs 80 lakh to Rs 1.5 crore rose by 23 per cent in the period. The inventory of homes priced between Rs 1.5 crore to Rs 2.5 crore saw a seven per cent jump.

The stock of affordable homes, priced below Rs 40 lakh, rose six per cent in the region.

Furthermore, despite increased new supply in the top seven cities, the overall unsold stock across all budget categories remained static in the period. It fell from 627,000 units in Q4FY23 to 628,000 units at the end of the last quarter of the previous financial year.