Premium Housing Takes Center Stage: Affordable Launches Drop 21% in April-June
Builders focus on premium units, leading to a 21% decline in affordable housing launches across 7 major cities
Affordable HousingPremium HousingIndian Real EstateJll ReportHousing LaunchesResidential SalesReal Estate NewsJul 12, 2024
According to a report by JLL, Mumbai and Hyderabad led the half-yearly launches, collectively contributing around 43% of the overall launches. The report also revealed that new supply of affordable apartments costing below ₹50 lakh declined 21% in the April-June period.
Despite the decline in affordable housing launches, the overall new supply of housing units increased by 5% in H1 2024 compared to the same period in H1 2023. The report attributed this growth to strong supply from reputed developers, favorable economic conditions, and positive buyer sentiments.
The period recorded the highest ever half-yearly sales, with a 22% increase compared to the same period in 2023, totaling 1.54 lakh units. Most of the cities witnessed robust Y-O-Y growth in sales volume, with the markets of Bengaluru, Mumbai, Pune, and NCR accounting for around 80% share in half-yearly sales.
The report also highlighted that housing prices continue to move upwards, with Y-O-Y price increase ranging from 5% to 20% in the top seven cities. The highest price increase was observed in Delhi NCR, with a significant jump of approximately 20%.
The availability of under-construction inventory in these cities getting restricted has resulted in a subsequent surge in prices. In response to the high demand for newly launched projects, developers are launching new phases of existing projects at elevated price levels, resulting in overall property price growth.
The report notes that listed and reputed developers have played a key role in this growing trend, consistently bringing in a substantial supply over the past few years.
Frequently Asked Questions
What was the year-on-year growth of premium housing segment?
The premium housing segment priced between ₹3-5 crore saw a 170% year-on-year (Y-O-Y) growth.
Which cities led the half-yearly launches?
Mumbai and Hyderabad led the half-yearly launches, collectively contributing around 43% of the overall launches.
What was the decline in new supply of affordable apartments costing below ₹50 lakh?
The new supply of affordable apartments costing below ₹50 lakh declined 21% in the April-June period.
What was the highest ever half-yearly sales recorded in H1 2024?
The period recorded the highest ever half-yearly sales, with a 22% increase compared to the same period in 2023, totaling 1.54 lakh units.
What was the highest price increase observed in the top seven cities?
The highest price increase was observed in Delhi NCR, with a significant jump of approximately 20%.
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