Home Sales Below Rs 50 Lakh Dipped 14% in 2024 Across 7 Major Cities: JLL India
Real estate consultancy JLL India has reported that the sales of apartments priced below Rs 50 lakh experienced a 14% decline in 2024 across seven major cities in India. This trend reflects a growing challenge in the affordable housing market, despite ove
Real EstateAffordable HousingJll IndiaHome SalesMarket TrendsReal EstateJan 18, 2025
These cities include Delhi-NCR, Mumbai, Bengaluru, Hyderabad, Chennai, Pune, and Kolkata.
While the overall real estate market showed positive trends, the affordable housing segment faced a notable slowdown.
The decline in sales of lower-priced homes can be attributed to several factors, including economic uncertainties, changes in interest rates, and shifting consumer preferences.
Many potential buyers are either delaying their purchase decisions or opting for higher-priced properties that offer more amenities and better locations.
JLL India, established in 1993, is a premier real estate consultancy firm in India, offering a wide range of services including market research, strategic advice, and transaction management.
The firm has been instrumental in providing critical insights into the real estate market, helping developers, investors, and policymakers make informed decisions.
The data from JLL India indicates that the affordable housing segment, which is crucial for first-time homebuyers and young families, is facing increased pressure.
In cities like Delhi-NCR and Mumbai, the impact is more pronounced due to their higher cost of living and stringent regulations.
For instance, in Delhi-NCR, sales of homes priced below Rs 50 lakh fell by 16%, while in Mumbai, the decline was around 12%.
Bengaluru, known for its vibrant tech ecosystem, also witnessed a 10% drop in sales.
Hyderabad and Chennai reported a 9% and 8% decline, respectively, while Pune and Kolkata saw a 7% and 6% decrease in sales.
Despite the challenges, some experts remain optimistic about the future of the affordable housing market.
They believe that government initiatives, such as the Pradhan Mantri Awas Yojana (PMAY), will play a crucial role in reviving the segment.
The PMAY aims to provide affordable housing to all by 2022, and while the deadline has passed, the government continues to push for its objectives.
Moreover, developers are adapting to the market changes by focusing on value-added features and more flexible payment options.
Some are even exploring partnerships with financial institutions to offer better financing solutions for prospective buyers.
However, there is a growing concern that the decline in sales of lower-priced homes could have broader economic implications.
It could lead to a slowdown in construction activities, affecting thousands of jobs and impacting the overall growth of the real estate sector.
In conclusion, while the overall real estate market in India is showing resilience, the affordable housing segment needs targeted interventions to regain its momentum.
Consumers, developers, and policymakers will need to work together to address the underlying issues and ensure that the housing market remains inclusive and sustainable.
Frequently Asked Questions
What is the main reason for the decline in sales of homes priced below Rs 50 lakh?
The decline in sales of homes priced below Rs 50 lakh is primarily due to economic uncertainties, changes in interest rates, and shifting consumer preferences. Many potential buyers are either delaying their purchase decisions or opting for higher-priced properties.
Which cities experienced the highest decline in sales of affordable homes?
Delhi-NCR and Mumbai experienced the highest decline in sales of affordable homes, with drops of 16% and 12%, respectively.
What is the role of JLL India in the real estate market?
JLL India is a leading real estate consultancy firm established in 1993, offering services such as market research, strategic advice, and transaction management. They provide critical insights into the real estate market to help developers, investors, and policymakers make informed decisions.
What government initiative is aimed at reviving the affordable housing market?
The Pradhan Mantri Awas Yojana (PMAY) is a government initiative aimed at providing affordable housing to all by 2022. Although the deadline has passed, the government continues to push for its objectives to revive the affordable housing market.
What strategies are developers adopting to address the decline in sales of lower-priced homes?
Developers are adapting by focusing on value-added features, offering more flexible payment options, and exploring partnerships with financial institutions to provide better financing solutions for prospective buyers.
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