Chennai: JLL has announced the launch of its annual Home Purchase Affordability Index (JLL HPAI) which shows that from 2011 to 2020, home purchase affordability improved across key Indian cities.
This was despite a bigger fall in annual household income as compared to residential property prices. A sharp decrease in the cost of funding (average home loan rates reduced from ~8.9 per cent in 2019 to 7.5 per cent in 2020), more than offset the adverse impact of lower incomes on affordability, the report added.
“We believe that the initial signs of revival were visible in the residential market in the third quarter of 2020, with sales of residential units witnessing an uptick. Furthermore, our analysis suggests that despite a fall in household income in 2020, home purchase affordability has increased in 2020 across all the markets under consideration,” said Ramesh Nair, CEO and country head, JLL India.