As villas are losing the plot, the share of high-rises in Indian residential real estate was at an all-time high of 52 per cent in 2019.

“With Indian cities under increasing pressure to grow vertically, the share of high-rises (G+20 floors or more) scaled unprecedented heights in 2019,” said Anuj Puri, Chairman, Anarock Property Consultants.

Quoting Anarock data, he said, “Preference for high-rises indicates that of a total 1,816 residential projects launched across the top seven cities in 2019, over 52 per cent were high-rises.”

Not surprisingly, land-scarce Mumbai Metropolitan Region (MMR) topped the list with over 75 per cent of the total 734 projects launched in 2019 being 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.

The National Capital Region (NCR) came in next with nearly 70 per cent of its total launched projects in the high-rise category. Bengaluru clocked in with 45 per cent of the total projects launched in 2019 towering above G+20 floors, followed by Pune with 41 per cent share.

In Hyderabad, Kolkata and Chennai, the share of G+20 floors or above option is scantier, at 23 per cent, 21 per cent and 16 per cent, respectively.

Notably, Chennai and Hyderabad ― two cities which had 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 to accommodate increased inward migration.

Villas losing the plot

According to Puri, 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’.

Of the total new launches of 5.45 lakh units in 2014, nearly 5 per cent were villas. In 2019, this share dropped to 2 per cent of the total 2.37 lakh units launched during the year, revealed Anarock data.

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 show the declining villa trend.

Hyderabad stood out ― of the total new launches of nearly 14,530 units in 2014, over 35 per cent were villas. In 2019, the supply share of villas reduced to 8 per cent of the total launches of nearly 14,840 units. Interestingly, the total supply in both years was almost similar.

In Chennai, the share of villas in 2014 was second-highest with over 16 per cent of total new launches (28,540 units). In 2019, this share dropped to 5 per cent of the total 13,000 units launched.

Bengaluru saw its share of villa launches drop from 12 per cent in 2014 to 5 per cent in 2019. The overall launches in the city stood at 85,950 units in 2014 and 50,450 units in 2019. NCR saw only a marginal drop ― from a 3 per cent share of 1.73 lakh units in 2014 to 2 per cent of the 46,920 units in 2019.

MMR saw a mere 1 per cent share of villas from a total 1.34 lakh units launched in 2014; their share in 2019 was zero. In Pune and Kolkata too, the share of villa supply has been negligible in the last five years.