Housing demand at 4.2 mn during 2016-2020 in 8 cities: C&W

Total demand for urban housing is estimated at 4.2 million units during the period 2016-2020 across the top eight cities, according to a report by Cushman & Wakefield and GRI.

Existing under-construction and planned supply of 1.0 million housing units by private developers is expected to be delivered across top eight cities during the said period, said the report.

Delhi-NCR (NCT, Ghaziabad, Faridabad, Gurgaon and Noida) continues to garner the highest proportion of demand of 24 per cent at around 1 million units by the end of 2020, said the report titled “Revitalising Indian Real Estate: A new era of growth & investment”.

LIG (low income group) housing, below Rs 15 lakh, is the most under-serviced segment. While the LIG is likely to generate demand of about 1.98 million units by 2020, supply by private developers is going to be barely 25,000 units.

Similarly, though the MIG or middle income group (Rs 15-70 lakh) accounts for 63 per cent of the total housing supply across eight cities between 2016 and 2020 at 647,000 units, the demand is estimated to be a much higher at 14,57,000 units, it said.

Further, the move to demonetise large currencies in order to crack down on black money could further temper demand for HIG and luxury housing. This is expected to propel developers to recalibrate their plans to suit the high demand segments of affordable housing.

Delhi-NCR is expected to have the highest demand in all the three segments in the period 2016-2020.

Mumbai is expected to follow Delhi-NCR in terms of housing demand. However, a majority of the supply is likely to cater to the HIG, followed by the MIG and LIG. Amongst all the eight cities, developers are likely to launch the highest number of units for the LIG in Kolkata, it added.

Source : Mbnow