NCR needs 3.81 lakh housing units
Additional housing demand is estimated to be approximately 2.1 million units in major cities over the next five years, says a report by Cushman & Wakefield
The total new demand that could be generated for residential dwellings in the period 2012 to 2016 will be 11.8 million units across India. Of the total additional demand, the top eight cities will constitute 18% or 2.1 million units across categories, says the annual report: Evolving paradigm – future of Indian real estate, conducted by global real estate consultancy Cushman & Wakefield’s (C&W) in association with Global Real Estate Institute (GRI). NCR is expected to witness the highest demand across mid and high-end segments at 381,000 units during 2012 - 2016
The additional or new demand that can be generated in 2012-2016 is calculated based on the past trends for population and household growth and the income classification for the households. Hence, this does not take into consideration existing unfulfilled demand by those without homes, living in congested homes and or in dilapidated structures. The ministry of housing and urban poverty alleviation estimates such demand resulting from housing shortages at 18.78 million units for the entire country. C&W’s estimates also do not consider the existing or future demand from those living in rental houses and wanting to shift into their own houses, demand from NRIs or those wishing to purchase second homes.
Of the total additional demand in the top eight cities, demand for mid-segment is estimated to be highest at approximately 59% or 1.3 million units, followed by demand in the high-end segment of 451,000 units. The low-end segment is expected to see 362,000 of fresh demand in these cities in the next five years.
“The demand creation in leading eight cities is reflective of the economic strength of the cities, that attracts new settlers and creates conducive environment for population growth,” said Sanjay Dutt, executive managing director, South Asia, Cushman & Wakefield.