1.20 Crore Homes Needed in India by 2013-17

1.20 Crore Homes Needed in India by 2013-17 : Cushman & Wakefield Report

Top 8 cities, including NCR & Mumbai, Chennai would witness an additional housing demand of  28 lakh (2.8 million) units in the next five years (2013 -17). But, supply will lag behind due to economic and regulatory issues, says property consultant Cushman & Wakefield.

"The total new housing demand across India country will be nearly 12 million (1.20 Crore) units in the next  five years (2013-17). This is based on the estimated growth of population across India," C&W said in a statement.

The top 8 cities will constitute nearly 23% out of the total demand. These cities are Delhi - National Capital region (NCR), Mumbai, Kolkata, Chennai, Hyderabad, Bangalore, Pune and Ahmedabad.

"Of the total demand in top 8 cities, middle income group (MIG) and higher income group (HIG) categories constitute majority of the demand at 2.5 million (25 lakh) units," the C & W consultant said.

The demand for lower income group (LIG) will be a mere 3 lakh units in these 8 cities, due to expected increase in the housing & income standards in these key economic centres.

The gap between cumulative supply and demand in HIG and MIG segments during 2013- 2017 is estimated to be nearly 45% in the top 8 cities.

The supply of housing units in MIG and HIG during 2013-17 is expected to be around 1.4 million (14 lakh) units in the top 8 cities and of this about 1 million (10 lakh) units would be in MIG category and only about 4 lakh units will be in the HIG category.

"The gap between fresh demand & supply is expected to see an incremental expansion as supply will fall short on account of economic, regulatory and political scenario," C & W Executive Managing Director ( South Asia) Mr. Sanjay Dutt said.

However, Mr. Sanjay Dutt noted that some of the demand in the next couple of years can be met through the existing vacant stock.

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