The supply of new affordable apartments—priced below Rs 50 lakh—decreased by 21 per cent in the April-June period across seven major cities, according to JLL India. The decline was attributed to builders focusing more on launching premium flats.


JLL India's latest data for the housing market in these cities, released on Friday, indicates a 5 per cent increase in the overall supply of apartments, reaching 159,455 units during April-June 2024 compared to 151,207 units in the same period last year. The analysis explicitly covers apartments, excluding rowhouses, villas, and plotted developments.


Out of the total new supply in the June quarter, launches of affordable flats amounted to 13,277 units, marking a 21 per cent drop from 16,728 units in the corresponding period last year. Meanwhile, the launch of flats priced between Rs 50 lakh and Rs 1 crore declined by 14 per cent to 47,930 units, compared to 55,701 units previously.


In the price bracket of Rs 1-3 crore, new supply increased by 3 per cent, rising to 69,312 units from 67,119 units year over year.


The number of apartments launched in the Rs 3-5 crore price range more than doubled, increasing to 19,202 units from 7,149 units previously. Similarly, in the above Rs 5 crore category, the new supply surged more than two-fold to 9,734 units from 4,510 units.


Addressing the trend of rising premium home supply and declining affordability, Siva Krishnan, Senior Managing Director (Chennai and Coimbatore), Head of Residential Services, India at JLL, commented, "This speaks about developers' active response to the surge in demand for high-value homes among the target clientele."


Regarding demand, JLL reported a 22 per cent increase in apartment sales across seven major cities during April-June 2024, rising to 154,921 units from 126,587 units in the same period last year. These cities include Delhi-NCR, Mumbai Metropolitan Region (MMR), Kolkata, Chennai, Bengaluru, Hyderabad, and Pune.


Explaining the geographic scope, MMR encompasses Mumbai city, Mumbai suburbs, Thane city, and Navi Mumbai, while Delhi-NCR includes Delhi, Gurugram, Noida, Greater Noida, Ghaziabad, Faridabad, and Sohna.


Samantak Das, Chief Economist and Head of Research, India at JLL, noted, "Interesting to note, sales momentum has successfully complemented the new launches with around 30 per cent of the H1 2024 sales (154,921 units) being contributed by projects that got launched during the last six months.”


Das attributed this trend to the consistent contribution of listed and reputable developers who have significantly bolstered supply in recent years.


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