Surge in Premium Flats as Affordable Housing Declines 21% in Major Cities

A JLL India report highlights a 21% decline in new supply of affordable apartments across seven major cities in April-June 2024. Developers are focusing on premium flats, with the supply of high-end homes increasing significantly. Overall, new apartment supply rose by 5%, and sales jumped by 22% compared to the previous year.

A JLL India report indicates a notable shift in the real estate market, with a 21% reduction in the supply of affordable apartments below Rs 50 lakh across seven major cities during April-June 2024. This trend is attributed to developers prioritizing premium flats.

The data shows a 5% overall increase in new apartment supply, totaling 1,59,455 units, up from 151,207 units the previous year. Specifically, the supply of flats costing between Rs 50 lakh and Rs 1 crore fell by 14%, while higher-priced segments saw significant growth. Units priced between Rs 3-5 crore more than doubled in supply, and those above Rs 5 crore saw a two-fold increase.

JLL India's senior managing director, Siva Krishnan, highlighted the rising demand for high-value homes among affluent buyers. Sales also surged by 22% to 154,921 units in the same period. According to JLL's Chief Economist Samantak Das, the momentum is driven by projects launched in the last six months, contributing to 30% of the H1 2024 sales.

(With inputs from agencies.)