Shifting Trends: Affordable Housing Recovers, Luxury Stock Surges

Post-pandemic, affordable housing is showing signs of recovery with a 19% drop in unsold units, highlighting a demand resurgence. In contrast, luxury housing sees a 24% surge in unsold inventory due to increased supply and economic uncertainty, despite a boost in sales and new launches.

The post-pandemic real estate landscape is witnessing a significant shift. Affordable housing, which saw a cautious market, is now showing recovery signs. A recent ANAROCK report highlights an impressive 19% reduction in unsold inventory in the sector, signaling a potential demand revival.

Luxury housing, however, tells a different story. The segment has experienced a dramatic 24% rise in unsold stock, despite robust demand and generous supply inflations. This surge is indicative of economic uncertainty influencing cautious buyer behavior.

City-specific data reveals Bengaluru as a frontrunner in affordable housing recovery, shedding 51% of unsold stock, followed by Chennai at 44%. Despite these bright spots, Hyderabad is an exception, seeing a 9% increase in affordable housing stock.

Luxury housing's increase in unsold inventory is largely attributed to excessive supply amid unpredictable economic times. Anuj Puri, Chairman of ANAROCK Group, emphasized the industry's shifts, noting that both the affordable and luxury sectors contribute significantly to the total unsold units across India's major cities.

Overall, affordable housing accounts for approximately 112,744 of the unsold units, while luxury housing has 113,193. Each sector represents about 20% of the national unsold stock, underscoring the varied dynamics in the recovering real estate market.

(With inputs from agencies.)