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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