Chennai: Housing Demand & Supply in 2014 - 2018..!

 By C&W Report

With cumulative requirement of about 3.34 lakh housing units until 2018, Chennai is the third-highest demand generator amongst the top eight cities of India. Chennai’s traditional importance as a port city and educational centre of the south remains unchanged.

In addition, the increase in IT - ITeS activities and establishment of large manufacturing set-ups is driving residential housing demand across various locations. Of the total cumulative demand, about 43 % is likely to arise in the Lower Income Group (LIG) and an additional 38 % in the Middle Income Group (MIG).



As per the estimates, about 87 % of planned supply is likely to cater to the MIG only, creating a large demand-supply gap in the LIG & High Income Group (HIG).

Overall, with a gap of about 2.33 lakh units, Chennai ranks amongst the top cities having a housing shortfall during the next 5 years (until 2018).


High gap is primarily due to a significantly low supply (about 1.02 lakh units) in the next 5 years, primarily due to stretched timelines because of delays in securing necessary approvals for new projects. 




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