Housing demand seen growing 17% in 2010
Residential demand in top cities is projected to grow nearly 17% in 2010 to 5.8 lakh units aided by strong economic growth and improved affordability, according to Cushman & Wakefield.
The housing demand in these cities (30 top cities) was estimated at 4.9 lakh units during 2009.
Moreover, the favourable conditions mean that the demand for housing may get pushed to a higher orbit in the coming years. Cushman & Wakefield estimates that demand will continue to grow steadily at a higher pace annually till 2014.
Units wanted
Residential demand is seen at 6.8 lakh units in 2011 (18% growth over 2010), about 8.1 lakh units in 2012 (19%), 9.8 lakh units in 2013 (near 20%), and 11.8 lakh units in 2014 (about 20.6% growth). The forecast is based on parameters such as affordability, population growth, anticipated home loan disbursements, among others.
The 30 cities include large macro markets such as NCR, Mumbai, Bangalore, Chennai, Pune, Hyderabad and Kolkata as well as smaller cities such as Ahmedabad, Jaipur, Cochin and Nagpur. The selection of cities was based on an analysis of economic activity, infrastructure development, population growth and presence of organised real estate developers.
“The pan-India residential demand for the period 2010-2014 is estimated to be about 4.25 million units (cumulative), of which mid-range and affordable sectors continue to capture a significant share of 70%,“ the global real estate consultant has said in its latest report.
Buoyant growth
Manish Aggarwal, Executive Director (Investment Services) of Cushman & Wakefield India, said, “With economic environment showing signs of stability and buoyant growth, and given the improvement in affordability and access to finance, the housing market in the country is expected to witness a revival in demand in the near future.“
Though the housing demand has spiked in the last two to three quarters, supply largely remains constrained owing to the slow pace of construction activity during FY10, it said. As a result, demand across the top seven cities is estimated to be three times higher than supply during the five-year period ending 2014.
“However, the ratio differs within segments – affordable and mid-segment is expected to witness about three times higher demand (than supply) and EWS demand would be six times higher than upcoming supply,“ the C&W report added.
