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New supply of affordable apartments costing below Rs 50 lakh declined by 21 per cent in the April-June period across seven major cities as builders are launching more premium flats, according to real estate consultant JLL India.
JLL India released data for the housing market of major seven cities, showing a 5 per cent increase in fresh supply of apartments to 1,59,455 units during April-June 2024 from 151,207 units in the year-ago period.
The data includes only apartments. Rowhouses, villas, and plotted developments have been excluded from the analysis. Of the total new supply in the June quarter, the launches of affordable flats stood at 13,277 units, a fall of 21 per cent from 16,728 units in the same period last year. The launches of flats, each costing Rs 50 lakh to Rs 1 crore, declined 14 per cent to 47,930 units from 55,701 units.
In the Rs 1-3 crore price bracket, the new supply grew 3 per cent to 69,312 units from 67,119 units. The launches of apartments, each priced Rs 3-5 crore, more than doubled to 19,202 units from 7,149 units. Similarly, in above Rs 5 crore category, the new supply jumped more than two-fold to 9,734 units from 4,510 units.
Commenting on the trend of rise in the supply of premium homes and fall in the supply of affordable homes, Siva Krishnan, Senior Managing Director (Chennai and Coimbatore), Head-Residential Services, India, JLL, said, "This speaks about developers' active response to the surge in demand for high-value homes among the target clientele."
On-demand, the consultant said the sales of apartments across seven major cities rose 22 per cent to 154,921 units during April-June 2024 from 126,587 units in the year-ago period. These seven cities are Delhi-NCR, Mumbai Metropolitan Region (MMR), Kolkata, Chennai, Bengaluru, Hyderabad, and Pune. The MMR includes Mumbai city, Mumbai suburbs, Thane city, and Navi Mumbai; Delhi-NCR includes Delhi, Gurugram, Noida, Greater Noida, Ghaziabad, Faridabad, and Sohna.
"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," said Samantak Das, Chief Economist and Head of Research, India, JLL.
Listed and reputed developers, consistently bringing in a substantial supply over the past few years have played a key role in this growing trend, Das said.
