Research Report Estimates: Housing Demand to Exceed Supply over the next 5 years by 45%

GROWTH IN POPULATION TO LEAD TO HOUSING DEMAND OF 2.8 MN UNITS ACROSS TOP 8 CITIES IN 5 YRS: C&W

 

You would be well aware of the recent continuous reporting in sections of the media pertaining to the alleged excess supply of housing units in cities across India and the subsequent pilling housing inventory. Much of this reporting is without any accurate scientific analysis.

A recent report by one of the world’s largest global real estate consultancy Cushman & Wakefield (C&W) after conducting a data-driven research and analysis across the major cities in India, has found that housing demand will actually exceed supply by 45 % across top 8 cities in the next 5 years.

The gap between fresh demand and supply is expected to see an incremental expansion as supply will fall short on account of economic, regulatory and political scenario.

While demand for housing units will growproportionate to the rise in population, supply is expected to be less aggressive in the short to medium term. According to Cushman & Wakefield, new regulations like LARR Bill and Real Estate regulatory bill which are expected to come into force in the next few quarters will delay supply.

Additionally, there may also be a rise in construction cost which may affect pricing.

As illustrated below, NCR is expected to witness the highest demand in the country across mid – ranged and high-end segments estimated to be 770,000 units during 2013 – 2017 while the expected cumulative supply in the same period for these segments is expected to be 600,000 (approx.). Therefore in NCR, the gap is expected to be approximately 22 % or 1,70,000 units over the mentioned period.

It is clear that supply will not be able to service the increasing demand resulting in potential for significant price increase across all segments. Now, therefore is perhaps a good time to invest in real estate to get a location of your choice at competitive pricing. At Unitech, we have varied residential housing offerings across segments. To know more about these offerings, please feel free to call us at 1800 102 0277.

		CITY		DEMAND			SUPPLY		SUPPLY-    DEMAND GAP (%)
				TOTAL	MIG	HIG	TOTAL	MIG	HIG
		Ahmedabad		230,709	184,567	46,142	80,437	64,350	16,087	65
			Bengaluru		412,820	309,615	103,205	197,184	147,888	49,296		52
			Chennai		314,442	282,998	31,444	59,920	53,928	5,992		81
			Hyderabad		261,883	170,224	91,659	84,269	54,775	29,494		68
			Kolkata		93,306	74,645	18,661	66,592	53,274	13,318		29
			NCR		777,917	544,542	233,375	606,274	424,392	181,882		22
			Pune		179,018	116,362	62,656	52,932	34,406	18,526		70
			Mumbai		225,351	157,746	67,605	214,194	149,936	64,258		5
			TOTAL		2,495,446	1,840,699	654,747	1,361,802	982,949	378,853		45

           

MIG segment consists of units with saleable areas ranging between 600 to 1,400 square feet and / or are priced between Rs.  15  lakh to 80 lakhs.

However, in Mumbai and NCR the upperlimit goes up to R. 1 crore.

HIG segment comprises of units with saleable areas more than 1,400 square feet and / or priced above Rs. 80 lakhs. However, in Mumbai and NCR the units would be priced above Rs. 1 crore

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