‘Property demand to rise to 12 mn housing units by 2016′

A fresh demand for nearly 12 million housing units is expected to be generated over the next five years across the country, global property consultant Cushman and Wakefield said in a report.

About 20 percent of this additional demand would be in top eight cities of the country. “The total new demand that could be generated for residential dwellings in the period 2012–16 will be 11.8 million units across India. Of the total additional demand, the top 8 cities will be constituting 18 percent or 2.1 million units across categories,” Cushman & Wakefield (C&W) said in a report.

These eight cities are Ahmedabad, Bengaluru, Chennai, Hyderabad, Kolkata, Mumbai, NCR and Pune. The annual report “Evolving Paradigm—Future Of Indian Real Estate” is in association with Global Real Estate Institute (GRI).

The additional 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, the consultant said.

This does not take into consideration, existing unfulfilled demand by those without homes, living in congested homes and/or in dilapidated structures, it added.

The Ministry of Housing & Urban Poverty Alleviation estimates such demand resulting from housing shortages at 18.78 million units for the entire country. C&W’s estimates do not consider the investors demand. Of the total additional demand in the top eight cities, demand for mid-segment is estimated to be highest at about 59 percent or 1.3 million units, followed by demand in the high-end segment which is 4,51,000 units.

The low-end segment is expected to see 3,62,000 of fresh demand in these cities in the next five years. “The demand creation in leading eight cities is a reflective of the economic strength that these cities have, that attracts new settlers as well as creates conducive environment for natural population growth.

“We see a higher demand in the mid-ranged segment in these cities that further explains that there is a rapid growth in the economically viable population in these cities which is helping them and the cities in creation of wealth,” C&W Executive Managing Director (India) Sanjay Dutt said.

Source: http://www.firstpost.com/business/property-demand-to-rise-to-12-mn-housing-units-by-2016-478401.html