With cities growing vertical, almost half of the launches in 2019 were of the G+20 floors variant. The villa concept has more or less diminished to just about 2 percent share, with homebuyers now preferring sky villas, says a report.
Of a total 1,816 residential projects launched across the top seven cities in 2019, over 52 percent were high-rises, ANAROCK data has indicated.
“The increasing trend of vertical development has taken the sheen off a once highly-preferred property type - villas. Both demand and supply of this format are diminishing, with wealthy homebuyers preferring the latter-day concept of ‘sky villas’,” said Anuj Puri, Chairman - ANAROCK Property Consultants.
Land-scarce MMR tops the list with over 75 percent of the total 734 project launched in 2019 in the high-rise category. With G+20 floors the new normal in the region, Mumbai is closing in on other mega cities like New York, Hong Kong and Tokyo where buildings as tall as G+50 floors are the norm, it said.
NCR came next with nearly 70 percent of its total launched projects in the high-rise category. Bengaluru clocked in with 45 percent of the total projects launched in 2019 towering above G+20 floors, followed by Pune with 41 percent share.
In Hyderabad, Kolkata and Chennai, the share of G+20 floors or above option is scantier, with their high-rise share at 23 percent, 21 percent and 16 percent respectively.
Chennai and Hyderabad - two cities which have stuck to more conventional low-rise formats for long – are gradually warming up to high-rise housing developments. In both these cities, the well-to-do preferred bungalows and sea-facing villas. It is only in the last decade that these cities have begun to grow vertically, largely due to accommodate increased inward migration.
As cities reach for the skies, total supply share of villas declines to all-time low of 2 percent in 2019 against 5 percent in 2014. Hyderabad sees the maximum decline in villas share - from 35 percent in 2014 to 8 percent of total city launches in 2019, the report said.
The increasing trend of vertical development has taken the sheen off a once highly-preferred property type - villas. Both demand and supply of this format are diminishing, with wealthy homebuyers preferring the latter-day concept of ‘sky villas’.
ANAROCK data reveals that of the total new launches of 5.45 lakh units in 2014, nearly 5 percent were villas. In 2019, this share dropped to 2 percent of the total of 2.37 lakh units launched during the year.
This downward trend has been evident in the eastern, western and northern regions since 2014. Today, the southern cities of Hyderabad, Bengaluru and Chennai also showcase the declining villa trend.
Hyderabad stood out - of the total new launches of nearly 14,530 units in 2014, over 35 percent were villas. In 2019, the supply share of villas reduced to 8 percent of the total launches of nearly 14,840 units. Interestingly, the total supply in both years is almost similar.
In Chennai, the share of villas in 2014 was second-highest with over 16 percent of total new launches (28,540 units). In 2019, this share dropped to 5 percent of the total 13,000 units launched.
Bengaluru saw its share of villa launches drop from 12 percent in 2014 to 5 percent in 2019. The overall launches in the city stood at 85,950 units in 2014 and 50,450 units in 2019, it said.
NCR saw only a marginal drop – from a 3 percent share of 1.73 lakh units in 2014 to 2 percent of 46,920 units in 2019.
MMR saw a mere 1 percent share of villas from a total 1.34 lakh units launched in 2014; their share in 2019 is now zero.
In Pune and Kolkata too, the share of villa supply has been negligible in the last five years.