Affordable Housing Supply Drops 21% in Top 7 Cities Amid Rising Demand for Premium Homes
Real estate consultant JLL India reports a decline in affordable housing launches, while premium home sales surge in top 7 cities.
Real EstateAffordable HousingPremium HomesJll IndiaIndian Real Estate MarketReal EstateJul 12, 2024
The data, released by JLL India, shows a 5% increase in the overall supply of apartments to 1,59,455 units during the April-June 2024 period, compared to 1,51,207 units in the same period last year. However, the launches of affordable flats stood at 1,32,77 units, a decline of 21% from 1,67,28 units in the same period last year.
In contrast, the supply of premium homes has seen a significant surge. The launches of flats priced between Rs 3-5 crore more than doubled to 19,202 units, while the supply of homes above Rs 5 crore jumped more than two-fold to 9,734 units.
Commenting on the trend, Siva Krishnan, Senior Managing Director (Chennai and Coimbatore), Head-Residential Services, India, JLL, said, “This shift in focus towards premium homes is a response to the growing demand for high-value homes among the target clientele.”
On the demand side, the sales of apartments across seven major cities rose 22% to 1,54,921 units during the April-June 2024 period, compared to 1,26,587 units in the same period last year. The seven cities include Delhi-NCR, Mumbai Metropolitan Region (MMR), Kolkata, Chennai, Bengaluru, Hyderabad, and Pune.
Samantak Das, Chief Economist and Head of Research, India, JLL, noted that listed and reputed developers have played a key role in this growing trend. “Around 30% of the H1 2024 sales (1,54,921 units) were contributed by projects that got launched during the last six months,” Das said.
information JLL India is a leading real estate consultant that provides comprehensive services to developers, investors, and occupiers. The company has been at the forefront of Indian real estate, offering expert advice and insights to its clients.
DLF, Macrotech, Indian Hotels, and Adani are some of the reputed developers in the Indian real estate sector.
Frequently Asked Questions
What is the decline in affordable housing supply in top 7 cities?
The supply of affordable apartments has witnessed a decline of 21% in the April-June quarter.
What is the main reason behind the decline in affordable housing supply?
Builders are shifting their focus towards launching premium flats, leading to a decline in affordable housing supply.
What is the percentage increase in overall supply of apartments during the April-June 2024 period?
The overall supply of apartments has increased by 5% during the April-June 2024 period.
Which cities have seen a surge in demand for premium homes?
The seven cities that have seen a surge in demand for premium homes include Delhi-NCR, Mumbai Metropolitan Region (MMR), Kolkata, Chennai, Bengaluru, Hyderabad, and Pune.
What is the role of reputed developers in the Indian real estate sector?
Listed and reputed developers have played a key role in the growing trend of premium home sales in the Indian real estate sector.
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