JLL India Launches Home Purhase Affordability Index

/ -- JLL India Launches Home Purchase Affordability Index
Annual index analyzing affordability trends across key Indian cities
Affordability improved across India's key markets from 2014 to 2018 led by favorable home loan rates Most affordable residential market in 2018 was Hyderabad, followed by Kolkata and Pune Mumbai has rapidly climbed the affordability ladder but yet to cross the affordability threshold Kolkata is likely to overtake Hyderabad to be the most affordable market in 2020
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JLL HPAI indicates improved affordability across cities
Mumbai Delhi NCR Bengaluru Chennai Pune Hyderabad Kolkata

2011
47
83
113
93
101
140

104
2013
43
65
90
90
90
111
87
2018
84
120
154
155
167
183
174
JLL HPAI scores to further improve in future
Mumbai Delhi NCR Bengaluru Chennai Pune Hyderabad Kolkata
2019
90
125
158
164
177
187
185
2020
92
125
159
166
182
188
189
2021
94
126
160
167
185
189
193
Ramesh Nair, CEO & Country Head, JLL India says, "In our pursuit to advancing the residential sector to its next level, it is important to understand concepts such as home buyer's affordability which is influenced by various elements. With JLL HPAI, we aim to share a holistic perspective which can act as a feeder into strategic decision making for developers and policy makers."

He added, "Favorable home loan rates backed by stable price have resulted in improved affordability across cities from 2014. JLL HPAIscore of Mumbai has doubled in the last seven years, implying significant increase in in the city. From this point onwards, residential real estate is bound to grow further as we will continue to see robustness in deliveries and offtake in sales."
Samantak Das, Chief Economist and Head of Research & REIS, JLL India says, "As per JLL HPAI, affordability levels will continue to improve over the next three years for all seven cities. Over the same period, we expect a steady increase of 3-5% in property rates and 8-9% increase in average annual household income and home loan interest rates to remain range-bound. As developers align themselves with demand, in terms of quality of products as well as financial viability, sales momentum is likely to pick-up in the next 2-3 years."

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