Housing demand to be three times the supply by 2014: study
07 Oct 2010
Residential housing demand in India's 30 main cities will grow nearly 17 per cent to 5.8 lakh units by the end of this calendar year alone – and by 2014, the demand in seven major cities will be three times the supply, according to a report published by Cushman and Wakefield (India) Pvt Ltd on Wednesday. The housing demand in the 30 top cities was estimated at 4.9 lakh units during 2009.
According to the property consultancy firm's report, titled 'India real estate investment report 2010', the situation has arisen due to strong economic growth and improved affordability, combined with slower property development in the past two years. Moreover, the favourable economic conditions mean that the demand for housing may get pushed into orbit in the coming years.
Residential demand is seen at 6.8 lakh units in 2011 (18 per cent growth over 2010), about 8.1 lakh units in 2012 (19 per cent), 9.8 lakh units in 2013 (near 20 per cent), and 11.8 lakh units in 2014 (about 20.6 per cent growth). The forecast is based on parameters such as affordability, population growth, and home loan disbursements anticipated, among other factors.
The 30 cities include large macro markets such as Delhi, Mumbai, Bangalore, Chennai, Pune, Hyderabad and Kolkata as well as smaller cities such as Ahmedabad, Jaipur, Cochin and Nagpur. The selection of cities was based on an analysis of economic activity, infrastructure development, population growth and presence of organised real estate developers.
The demand for residences is estimated to be at least four million units by 2014 - and 60 per cent of it is likely to come from Mumbai, Bangalore, Pune, Chennai, Hyderabad, Kolkata and the Delhi national capital region (NCR), the report said.
Mumbai is likely to register the highest cumulative demand as well as the highest growth in demand. The demand will reach 830,000 units by 2014, and will rise by 23 per cent in demand in the same period. Following second, NCR will have a 20 per cent growth in demand, the report said.