Home Sales Below ₹50 Lakh Decline by 14% in 2024 Across 7 Major Cities: JLL Report
Real estate consultant JLL India's latest data reveals a significant 14% decline in the sales of apartments priced below ₹50 lakh in 2024 across seven major cities, including Mumbai, Delhi, Bengaluru, Chennai, Hyderabad, Kolkata, and Pune.
Real EstateAffordable HousingJll IndiaHome SalesMarket TrendsReal Estate MumbaiJan 18, 2025
The cities included in this study are Mumbai (including both the city and its suburbs), Delhi, Bengaluru, Chennai, Hyderabad, Kolkata, and Pune.
This trend highlights the challenges faced by the affordable housing segment in these urban centers.
The decline in sales can be attributed to a combination of factors, such as economic slowdown, increased unemployment, and a general hesitation among buyers due to market uncertainty.
Additionally, the rise in interest rates and stringent lending norms have made it more difficult for potential buyers to secure home loans, further dampening demand in the lower price range.
JLL India, a renowned real estate services firm, has been closely monitoring the housing market trends to provide insights and strategic advice to developers and investors.
Their comprehensive data analysis helps stakeholders understand the shifting dynamics of the real estate sector, enabling them to make informed decisions.
In Mumbai, one of the most expensive cities in the country, the impact of the decline is particularly pronounced.
The high cost of living and limited availability of affordable housing options have exacerbated the situation.
Despite the government's efforts to boost the real estate market through various schemes and incentives, the overall sentiment remains cautious.
Delhi, another major urban hub, has also witnessed a notable dip in sales.
The capital city's real estate market has been affected by policy changes, such as the implementation of the Real Estate (Regulation and Development) Act (RERA), which has increased compliance costs for developers.
This, coupled with the ongoing economic slowdown, has led to a decrease in buyer interest.
Bengaluru, known for its vibrant IT industry, has not been immune to this trend either.
The city has seen a slowdown in the affordable housing segment, with potential buyers increasingly looking at rental options or delaying their purchase decisions.
The rapid urbanization and infrastructure development have not been able to keep pace with the growing demand for affordable homes.
Similarly, Chennai, Hyderabad, Kolkata, and Pune have all reported a decline in the sales of homes priced below ₹50 lakh.
While these cities have been relatively more resilient compared to Mumbai and Delhi, the overall market sentiment is still cautious.
Factors such as job creation, infrastructure development, and the availability of financing options are crucial in driving demand in these cities.
The government's Pradhan Mantri Awas Yojana (PMAY) aims to provide housing for all by 2022, but the current market conditions suggest that achieving this goal may be challenging.
The scheme offers various incentives, including interest subsidies and tax benefits, to promote affordable housing.
However, the effectiveness of these measures has been limited by the broader economic and financial conditions.
To revitalize the market, experts suggest that policymakers and developers need to collaborate more closely.
Measures such as reducing interest rates, easing lending norms, and providing more attractive financing options can help boost demand.
Additionally, improving infrastructure and ensuring the availability of land for housing projects are essential steps to address the affordable housing crisis.
In conclusion, the 14% decline in the sales of homes priced below ₹50 lakh in 2024 across seven major cities, as reported by JLL India, underscores the need for a comprehensive approach to address the challenges in the affordable housing segment.
Stakeholders must work together to create a conducive environment that supports the growth and sustainability of the real estate market.
Frequently Asked Questions
What is the reason for the decline in home sales below ₹50 lakh in 2024?
The decline in home sales below ₹50 lakh in 2024 can be attributed to various factors, including economic slowdown, increased unemployment, market uncertainty, higher interest rates, and stringent lending norms.
Which cities are included in the JLL India report?
The JLL India report includes Mumbai, Delhi, Bengaluru, Chennai, Hyderabad, Kolkata, and Pune.
How has the government's Pradhan Mantri Awas Yojana (PMAY) affected the affordable housing market?
The PMAY aims to provide housing for all by 2022 and offers various incentives, including interest subsidies and tax benefits. However, the effectiveness of these measures has been limited by broader economic and financial conditions.
What measures can help boost demand in the affordable housing segment?
To boost demand in the affordable housing segment, measures such as reducing interest rates, easing lending norms, providing attractive financing options, improving infrastructure, and ensuring the availability of land for housing projects are crucial.
What is the role of JLL India in the real estate market?
JLL India is a leading real estate services firm that provides comprehensive data analysis and strategic advice to developers and investors, helping them understand the shifting dynamics of the real estate sector.
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