Hyderabad to maintain affordable housing status through 2024: JLL India
Despite the anticipated decrease in affordability levels from their zenith, Hyderabad's residential sector is all set to experience robust market activity well into 2024
Hyderabad: Hyderabad continues to emerge as a beacon of affordability in India’s real estate landscape, maintaining its stature as one of the most accessible cities for home purchases among the top seven metropolitan areas.
According to the JLL report, projections for 2024 indicate that Hyderabad’s Home Purchase Affordability Index (HPAI) will mirror the commendable levels observed in 2022, sustaining its position as an attractive hub for prospective homebuyers.
Despite the anticipated decrease in affordability levels from their zenith, Hyderabad’s residential sector is all set to experience robust market activity well into 2024. This forecast aligns with expectations of a surge in affordability, reaching a three-year high in the upcoming year, propelled by prospects of interest rate cuts, according to JLL’s insights.
The report states that the expectation of a 60-80 basis point repo rate cut in 2024 is poised to bolster homebuyers’ purchasing power, ensuring affordability remains comfortably within reach. The momentum in India’s housing market has been remarkable, with sales for the initial nine months of 2023 soaring to nearly 90 per cent of the entire figures for the preceding year, despite global economic fluctuations.
Siva Krishnan, Managing Director and Head of Residential Services, India at JLL, notes that despite sustained residential price growth, the improved economic outlook and enhanced income prospects have cushioned the minor dip in affordability throughout 2023.
The report underscores that Hyderabad, along with Kolkata and Pune, is projected to maintain its status as one of the most affordable cities for home purchases.
“While Kolkata remains the most affordable residential market in India among the top seven cities, it is likely to maintain its top billing through 2023 and 2024. Pune is expected to follow along with Hyderabad, with relatively better HPAI scores in 2024 and 2023 remaining similar to 2022 levels. All cities will remain lower than their highest affordability levels seen in 2021, but much higher than their previous lows,” it states.
The report suggests that robust market activity is anticipated to persist until the conclusion of 2024 across the cities, including Hyderabad, indicating a sustained trend in their real estate sectors.
