A recent JLL India report highlights a shift in new apartment construction towards higher-priced units in major cities. The April-June 2024 period saw a 5% rise in new apartment launches across Mumbai, Delhi NCR, Chennai, Kolkata, Bengaluru, Hyderabad, and Pune, totaling 159,455 units. However, affordable housing (under INR 50 lakh) dropped by 21%, with only 13,277 units launched. In contrast, premium and luxury segments saw significant growth, with units above INR 3 crore more than doubling to 19,202. Despite fewer affordable options, overall sales rose by 22%, driven by strong demand for new properties.
There's a changing trend in India's major cities when it comes to new apartment construction. A recent report by JLL India reveals a shift in focus from affordable housing towards higher-priced apartments.
The total number of new apartments launched across seven major cities (Mumbai, Delhi NCR, Chennai, Kolkata, Bengaluru, Hyderabad, and Pune) has increased by 5% in the April-June 2024 period compared to last year, reaching 159,455 units. However, the number of affordable options (under INR 50 lakh) has dropped by 21%, with only 13,277 units launched during this period. This is a significant decrease compared to the 16,728 units launched in the same period last year.
The JLL India report highlights a rise in demand for premium apartments. Launches in the INR 1-3 crore price bracket increased by 3%, reaching 69,312 units, while launches for apartments priced above INR 3 crore more than doubled to 19,202 units, compared to just 7,149 units launched last year. The highest growth is seen in the luxury segment (above INR 5 crore), where new supply jumped to 9,734 units, more than two-fold from 4,510 units in the previous year.
According to JLL India, developers are responding to a growing market for luxury and high-end apartments. This suggests that more homebuyers are looking for premium features and amenities, potentially driven by rising incomes and changing preferences.
Despite the shift in focus, it's important to note that overall apartment sales are still healthy. The report indicates a 22% increase in sales across the seven major cities compared to the same period last year, reaching 154,921 units. Interestingly, around 30% of these sales (approximately 46,476 units) were for apartments launched in the last six months, suggesting strong demand for new properties.
While the news might be discouraging for those seeking affordable housing options, it's not all negative. Listed and reputable developers are contributing significantly to the increased supply (over 159,455 units), indicating a potentially more reliable market. However, potential buyers on a budget may need to adjust their search parameters or consider exploring resale options for affordable apartments.
It's too early to say definitively whether this trend will continue. Continued economic growth and rising incomes could further push demand towards premium housing. However, government initiatives and support programs for affordable housing development could help address the gap and ensure a wider range of options for homebuyers across all income segments.
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