Unsold stock of homes priced above Rs 2.5 crore sees 24% Yearly dip in Mumbai

The stock of unsold houses in the luxury segment continued to drop even as the budget category took a hit in the Mumbai Metropolitan Region (MMR) during the Q1 of 2023, compared to the year-ago period, according to a report by ANAROCK. There was an overall 1 percent drop in the unsold luxury home inventory priced above Rs 2.5 crore across 7 big cities while it was the highest in Mumbai, the report revealed.   

The spike in luxury housing sales has been on the up after a drop in prices since the first wave of the COVID-19 pandemic. Data suggests that there was nearly a 24 per cent decline in unsold stock of homes priced over Rs 2.5 crore in MMR. From the unsold stock of approximately 20,480 units, the number had dropped to approx. 15,520 units by the quarter ending March 2023 in this category. After Q12019, MMR's luxury houses stock was approximately 23,130 units.

“Data also reveals a 1 per cent decline in the overall unsold stock of luxury homes priced more than 2.5 crore across all top 7 cities; however, MMR saw a 24% yearly decline in its unsold luxury stock. In fact, the current luxury stock of approx. 15,520 units is the lowest the city has held in this category in a long time,” said Anuj Puri, Chairman of ANAROCK Group.

The budget housing category, however, has struggled to show a similar trend. In fact, the overall unsold housing stock across all budget categories in MMR saw a yearly rise of 13 per cent – up from approx. 1,77,560 units by Q12022 to approx 2,00,540 units by March 2023.

Demand for Mid-segment houses drops

The unsold stock of mid-segment homes priced at Rs 40 - 80 lakh in MMR saw a steep growth of 33 per cent in the year. From roughly 40,245 units in Q1 2022, the stock rose to 53,550 units by March 2023.

The inventory of homes priced Rs 80 Lakh to Rs 1.5 crore in MMR also rose by 23 per cent in the period, going up from approx. 43,140 units by Q1 2022 to approx. 53,080 units by the first quarter of 2023.

While the homes priced between Rs 1.5 crore to Rs 2.5 crore did comparatively well, there was still a jump of 7 per cent. The stock of affordable homes, priced under Rs 40 lakh, grew by 6 per cent during the period moving to approximately 50,860 units in Q1 2022 to 53,970 units in Q12023.

Despite increased new supply in the top 7 cities in Q1 2023, overall unsold stock across all budget categories remained stable in the period. From 6.28 lakh units by Q12022, it had dropped marginally to 6.27 lakh units as of March 2023.