Kolkata Leads in Home Affordability, Mumbai Poised to Follow by 2025
Kolkata has emerged as the city with the highest home affordability, according to a recent report by JLL. The report also projects that Mumbai will see significant improvements in affordability by 2025.
KolkataMumbaiReal EstateProperty AffordabilityJllReal Estate PuneNov 27, 2024
JLL, a renowned global real estate consultancy, conducted an in-depth analysis of the residential real estate market across major Indian cities. The study aimed to provide insights into the current state of property prices and the future trends that are expected to shape the market.
Information
Kolkata, the capital of West Bengal, has long been known for its rich cultural heritage and historical significance. However, in recent years, the city has also been making waves in the property market, particularly in terms of affordability. The city's real estate sector has seen a steady increase in demand, driven by a growing population and a robust economy. Despite this, property prices have remained relatively stable, making it an attractive option for first-time homebuyers.
Key Findings of the JLL Report
According to the JLL report, Kolkata tops the chart in home affordability, with property prices that are significantly lower compared to other major Indian cities. The report attributes this to several factors, including
- Stable Property Prices Unlike other cities where property prices have skyrocketed, Kolkata has maintained a stable pricing structure, making homes more accessible to a broader range of buyers.
- High Demand The city has seen a consistent rise in demand for residential properties, driven by a growing population and an influx of young professionals.
- Economic Growth Kolkata's economy has been on a steady growth trajectory, which has further boosted the real estate market. The city has seen significant investments in infrastructure and industrial development, creating more job opportunities and attracting more residents.
Mumbai's Future Prospects
While Mumbai, the financial capital of India, currently lags behind in terms of home affordability, the JLL report predicts a significant improvement by 2025. The report highlights several factors that are expected to contribute to this change
- RBI Policies The Reserve Bank of India (RBI) has implemented policies to control inflation and stabilize the economy, which is expected to have a positive impact on the real estate market.
- Government Initiatives The government has launched several initiatives to promote affordable housing, such as the Pradhan Mantri Awas Yojana (PMAY), which aims to provide housing for all by 2022.
- Infrastructure Development Mumbai is witnessing a surge in infrastructure projects, including the construction of new metro lines and the development of new residential areas, which will help to reduce property prices and improve affordability.
Conclusion
The JLL report underscores the importance of affordability in the real estate market and highlights the potential for growth in cities like Kolkata and Mumbai. For first-time homebuyers and young professionals, these developments offer a promising outlook on the property market. As the real estate sector continues to evolve, it is crucial for policymakers, developers, and buyers to stay informed about the latest trends and opportunities.
About JLL
JLL (Jones Lang LaSalle) is a global professional services firm specializing in real estate and investment management. With a presence in over 80 countries, JLL offers a wide range of services, including property sales, leasing, valuation, and project management. The firm is known for its in-depth market research and insights, which help clients make informed decisions in the real estate sector.
Frequently Asked Questions
Why is Kolkata considered the most affordable city for homebuyers?
Kolkata is considered the most affordable city for homebuyers due to its stable property prices, high demand, and a growing economy. The city's real estate market has maintained a steady pricing structure, making homes more accessible to a wider range of buyers.
What factors are contributing to improved home affordability in Mumbai by 2025?
Several factors are contributing to improved home affordability in Mumbai by 2025, including RBI policies to control inflation, government initiatives like the Pradhan Mantri Awas Yojana, and significant infrastructure development projects such as new metro lines and residential areas.
What is the Pradhan Mantri Awas Yojana (PMAY)?
The Pradhan Mantri Awas Yojana (PMAY) is a government initiative aimed at providing affordable housing for all by 2022. The scheme includes various programs to promote the construction of affordable homes and to make housing more accessible to low-income groups.
How does JLL contribute to the real estate market?
JLL (Jones Lang LaSalle) is a global professional services firm that specializes in real estate and investment management. JLL offers a wide range of services, including property sales, leasing, valuation, and project management. The firm is known for its in-depth market research and insights, which help clients make informed decisions in the real estate sector.
What are the key findings of the JLL report on home affordability?
The key findings of the JLL report on home affordability include Kolkata topping the chart in home affordability due to stable property prices and high demand. The report also projects that Mumbai will see significant improvements in affordability by 2025, driven by government initiatives and infrastructure development.
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