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However, towards late last year, the demand for such luxury/premium homes started picking up. But it will take a while before numbers for developers actually start flowing in, according to experts.
From January to November 2014, the launch of new units in the premium segment in the price bracket of Rs 10 crore to Rs 30 crore dipped by 66 per cent in Delhi NCR with launch of just 123 new units and by 33 per cent in Mumbai Metropolitan Region with launch of 513 new units, according to data by research firm PropEquity.
For units priced over Rs 30 crore, there was no launch in Delhi-NCR in 2014 compared to 150 units in 2013 and nil in 2012. While in Mumbai, from 400 units in 2012, the new launch in this segment came down to 208 in 2013 and 88 in 2014, the data shows. The units include apartments, independent villas and floors.
According to experts tracking the sector, developers were treading a cautious path in launching luxury units as well as mid-segment products. "With sentiments turning positive after the coming of the new government, the demand has gone up not only in luxury premium segment but also other segments. But, it will take a while before numbers actually start showing up," an expert tracking Gurgaon market said.
Ashutosh Limaye, head (research & real estate intelligence service), JLL India, said developers were focusing on clearing inventory last year, rather than on new launches.
"Market dynamics has changed. The ticket size was too high in luxury/premium segment?market was not willing to pay back and high value clientele had many options to choose from," he said.
Anshuman Magazine, chairman and managing director, CBRE South Asia, said: "Except for few exceptions in select localities, the sales in the higher segment are not happening. There is positivity around but the turnaround period in the real estate sector is much larger. Hopefully by mid this year, there will be improved activity."
Both Magazine and Limaye are of the view that there still isn't substantial demand in this segment.
"There are a number of enquiries and property inspections but no actual sales. Developers who have put up their inventory with various offers are being taken up in Mumbai and Delhi markets," Limaye added.
Towards the end of November last year, the Lodha Group in Mumbai reopened bookings for its World One towers, touted as the world's tallest residential project. The developer claims to have sold apartments worth over Rs 500 crore within nine days of reopening bookings on November 29.
The Bengaluru-based Prestige group launched two luxury projects in December -- Prestige Leela Residences, a joint development with the Leela group, and Kenilworth in the city's central business district Cunningham Road. Apartments at Prestige Leela are priced between Rs 5 crore and12 crore and the Kenilworth apartments cost above Rs 5 crore. However, in Bangalore, a luxury home is anywhere between Rs 5 crore and 10 crore.
