Nearly 60% of the Mumbai city households earn less than Rs 80,000 annually, and the income of 19 per cent of those at the bottom of the pyramid is so low that they cannot afford to buy a house. This was revealed by a CII and Jones Lang Lasalle report on the real estate sector.
Only one per cent of the Mumbai households earn enough income an average of Rs 10,21,825 a year. This price to buy a home in the Mumbai city at the prevalent price,.citing the CII and Jones Lang Lasalle report.
Land prices increasing and other factors, such as input costs, further jacking up real estate prices, the situation seems to only get worse for an average homebuyer.
Mr. Anuj Puri, chairman and country head, Jones Lang Lasalle said “Unaffordable land prices have resulted in leapfrogging of residential development to the suburbs of suburbs or exurbs.""
The CII and Jones Lang Lasalle also found that 15% of the households fall in the higher middle income group, earning an average annual income of Rs 3,09,950. This segment generated a bulk of the demand in the high volume residential real estate market on the outskirts of the city.
The city’s working class is worse off than its counterparts in other metros, vis-a-vis the distance from workplace and the hours of commuting, the report revealed.
While residents of the lowest-priced locations in other cities, such as Kolkata, Pune, Hyderabad and even Chennai, travel less than 10 km to get to work, less privileged Mumbaikars travel more than 100 km to get to their workplace and back home every day.
About Jones Lang Lasalle..!
Jones Lang LaSalle is a financial and professional services firm specializing in real estate services. The firm offers integrated services delivered by expert teams worldwide to clients seeking increased value by owning, occupying or investing in real estate. With 2010 global revenue of more than USD 2.9 billion, Jones Lang LaSalle serves clients in 60 countries from more than 1,000 locations worldwide, including 185 corporate offices. The firm is an industry leader in property and corporate facility management services, with a portfolio of approximately 1.8 billion square feet worldwide. LaSalle Investment Management, the company’s investment management business, is one of the world’s largest and most diverse in real estate with more than USD 43 billion of assets under management.
Jones Lang LaSalle has over 50 years of experience in Asia Pacific, with over 19,700 employees operating in 78 offices in 13 countries across the region. The firm was named the Best Property Consultancy in Asia Pacific at 'The Asia Pacific Property Awards 2011 in association with Bloomberg Television'.
About CII..!
The Confederation of Indian Industry (CII) works to create and sustain an environment conducive to the growth of industry in India, partnering industry and government alike through advisory and consultative processes.
CII is a non-government, not-for-profit, industry led and industry managed organisation, playing a proactive role in India's development process. Founded over 116 years ago, it is India's premier business association, with a direct membership of over 8100 organisations from the private as well as public sectors, including SMEs and MNCs, and an indirect membership of over 90,000 companies from around 400 national and regional sectoral associations.
With 64 offices and 7 Centres of Excellence in India, and 7 overseas offices in Australia, China, France, Singapore, South Africa, UK, and USA, as well as institutional partnerships with 223 counterpart organisations in 90 countries, CII serves as a reference point for Indian industry and the international business community.
Confederation of Indian Industry
The Mantosh Sondhi Centre
23, Institutional Area, Lodi Road, New Delhi - 110003
T: 91-11-24629994-7; F: 91-11-24626149
E: ciico@cii.in; W: www.cii.in
Only one per cent of the Mumbai households earn enough income an average of Rs 10,21,825 a year. This price to buy a home in the Mumbai city at the prevalent price,.citing the CII and Jones Lang Lasalle report.
Land prices increasing and other factors, such as input costs, further jacking up real estate prices, the situation seems to only get worse for an average homebuyer.
Mr. Anuj Puri, chairman and country head, Jones Lang Lasalle said “Unaffordable land prices have resulted in leapfrogging of residential development to the suburbs of suburbs or exurbs.""
The CII and Jones Lang Lasalle also found that 15% of the households fall in the higher middle income group, earning an average annual income of Rs 3,09,950. This segment generated a bulk of the demand in the high volume residential real estate market on the outskirts of the city.
The city’s working class is worse off than its counterparts in other metros, vis-a-vis the distance from workplace and the hours of commuting, the report revealed.
While residents of the lowest-priced locations in other cities, such as Kolkata, Pune, Hyderabad and even Chennai, travel less than 10 km to get to work, less privileged Mumbaikars travel more than 100 km to get to their workplace and back home every day.
About Jones Lang Lasalle..!
Jones Lang LaSalle is a financial and professional services firm specializing in real estate services. The firm offers integrated services delivered by expert teams worldwide to clients seeking increased value by owning, occupying or investing in real estate. With 2010 global revenue of more than USD 2.9 billion, Jones Lang LaSalle serves clients in 60 countries from more than 1,000 locations worldwide, including 185 corporate offices. The firm is an industry leader in property and corporate facility management services, with a portfolio of approximately 1.8 billion square feet worldwide. LaSalle Investment Management, the company’s investment management business, is one of the world’s largest and most diverse in real estate with more than USD 43 billion of assets under management.
Jones Lang LaSalle has over 50 years of experience in Asia Pacific, with over 19,700 employees operating in 78 offices in 13 countries across the region. The firm was named the Best Property Consultancy in Asia Pacific at 'The Asia Pacific Property Awards 2011 in association with Bloomberg Television'.
About CII..!
The Confederation of Indian Industry (CII) works to create and sustain an environment conducive to the growth of industry in India, partnering industry and government alike through advisory and consultative processes.
CII is a non-government, not-for-profit, industry led and industry managed organisation, playing a proactive role in India's development process. Founded over 116 years ago, it is India's premier business association, with a direct membership of over 8100 organisations from the private as well as public sectors, including SMEs and MNCs, and an indirect membership of over 90,000 companies from around 400 national and regional sectoral associations.
With 64 offices and 7 Centres of Excellence in India, and 7 overseas offices in Australia, China, France, Singapore, South Africa, UK, and USA, as well as institutional partnerships with 223 counterpart organisations in 90 countries, CII serves as a reference point for Indian industry and the international business community.
Confederation of Indian Industry
The Mantosh Sondhi Centre
23, Institutional Area, Lodi Road, New Delhi - 110003
T: 91-11-24629994-7; F: 91-11-24626149
E: ciico@cii.in; W: www.cii.in
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