Affordable Housing Supply Dries Up as Builders Focus on Premium Projects
The latest data from JLL India reveals a 21% decline in affordable housing supply below Rs 50 lakh, while premium projects saw a significant surge in demand.
Affordable HousingPremium ProjectsReal Estate MarketJll IndiaIndian Housing MarketReal Estate NewsJul 15, 2024
The data from JLL India covers seven major cities, including Delhi-NCR, Mumbai Metropolitan Region (MMR), Kolkata, Chennai, Bengaluru, Hyderabad, and Pune. The report shows that the total fresh supply of apartments has increased by 5% to 1,59,455 units during the April-June quarter, compared to 1,51,207 units in the same period last year.
However, the launches of affordable flats, priced below Rs 50 lakh, have declined by 21% to 13,277 units from 16,728 units in the same period last year. On the other hand, the supply of premium apartments, priced between Rs 3-5 crore, has more than doubled to 19,202 units from 7,149 units. Similarly, the supply of luxury apartments, priced above Rs 5 crore, has jumped more than two-fold to 9,734 units from 4,510 units.
Siva Krishnan, Senior Managing Director (Chennai and Coimbatore), Head-Residential Services, India, JLL, attributes this trend to developers responding to the surge in demand for high-value homes among their target clientele.
In terms of sales, the report reveals that the demand for apartments across seven major cities has risen by 22% to 154,921 units during the April-June quarter of 2024, compared to 126,587 units in the same period last year. Notably, around 30% of the H1 2024 sales have been contributed by projects that got launched during the last six months, indicating a strong sales momentum.
Listed and reputed developers have played a key role in this growing trend, consistently bringing in a substantial supply over the past few years, according to Samantak Das, Chief Economist and Head of Research, India, JLL.
Information
JLL India is a leading real estate consultant that provides comprehensive services to clients across the Indian market. The company has been at the forefront of the Indian real estate market, offering expert insights and advisory services to developers, investors, and homebuyers.
Puravankara is a leading real estate developer in India, known for its high-quality residential and commercial projects. The company has a strong presence across major cities in India, including Bengaluru, Chennai, and Hyderabad.
Frequently Asked Questions
What is the decline in affordable housing supply below Rs 50 lakh?
According to JLL India, the supply of affordable apartments priced below Rs 50 lakh has declined by 21% in the April-June quarter of 2024.
What is the reason behind the decline in affordable housing supply?
Builders are shifting their focus towards launching more premium flats, catering to the growing demand from high-income buyers.
Which cities are covered in the JLL India report?
The report covers seven major cities, including Delhi-NCR, Mumbai Metropolitan Region (MMR), Kolkata, Chennai, Bengaluru, Hyderabad, and Pune.
What is the growth in demand for apartments across seven major cities?
The demand for apartments across seven major cities has risen by 22% to 154,921 units during the April-June quarter of 2024, compared to 126,587 units in the same period last year.
What percentage of H1 2024 sales have been contributed by projects that got launched during the last six months?
Around 30% of the H1 2024 sales have been contributed by projects that got launched during the last six months, indicating a strong sales momentum.
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