Housing demand at 4.2 million in 8 cities
Total demand for urban housing is estimated at 4.2 million units during the period 2016-2020 across the top eight cities, according to a report.
Existing under-construction and planned supply of 1.0 million housing units by private developers is expected to be delivered across top eight cities during the said period, said the report released by Cushman & Wakefield and GRI.
Delhi-NCR (NCT, Ghaziabad, Faridabad, Gurgaon and Noida) continues to garner the highest proportion of demand of 24 per cent at around 1 million units by the end of 2020, said the report titled “Revitalising Indian Real Estate: A new era of growth & investment”.
“At the ground level, despite demand grossly outstripping supply, there is a considerable proportion of unsold inventory in the MIG and HIG (high income group) categories, which are not absorbed as these properties are unable to demonstrate value for their buyers. Such units fall out of preference either on account of higher-than-expected prices or due to locations.
“Lack of funds and high land and development costs are the primary reasons for developers not opting for smaller sized units closer to city centres as profitability drastically reduces,” Cushman & Wakefield India Managing Director Anshul Jain said.