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Housing Demand surge As per a Cushman & Wakefield report India’s construction sector will not be short of work over the next 5 years As per a Cushman & Wakefield report India’s construction sector will not be short of work over the next 5 years with additional housing demand to be about 2.95 million units across eight cities with additional housing demand to be about 2.95 million units across eight cities In the latest study by global real estate eight cities, whilst demand constitutes 58 largely responsible for creating housing consultancy Cushman & Wakefield (C&W), per cent share of the cumulative demand- in India, has been grappling many issues total new demand for urban housing in supply gap. Delhi-NCR, Kolkata, Mumbai such as rising input costs, expensive land India is expected to be nearly 13 million and Pune are expected to witness the valuations, outdated building norms, units by the end of 2018 on account of the highest shortfall in LIG units. The MIG restricted access to funding, serious burgeoning population in urban centres. accounts for 59 per cent of the total supply delays in regulatory processes and This is in addition to the already existing across top eight cities whilst it has a 23 uncertain economic conditions resulting unmet demand. Of the total additional per cent share in cumulative demand- in poor and/or slow sales volumes, all of demand, the top eight cities are likely to supply gap. Cities such as Ahmedabad, which have resulted in holding back the constitute 23 per cent or 2.95 million units. Bengaluru and Mumbai are expected to growth of this sector since the last 2-3 Of the total additional demand across lead the ranks of those with the shortfall years. Consequently, the demand-supply the top eight cities, MIG is expected to of housing units catering to MIG. HIG imbalances across cities have been generate the highest volume of demand accounts only for 19 per cent of the total becoming more pronounced. of 1.08 million units until 2018, followed supply across top eight cities and has a The key ingredient for economic growth by the Lower Income Group (LIG), which is 20 per cent share in cumulative demand- and to provide necessary impetus on the expected to generate demand of nearly 1.05 supply gap. Bengaluru, Chennai and supply side has been provided by the million units, and the HIG with a demand Delhi-NCR are the leaders in cities with the government. With an allocation of `4,000 for 0.52 million units. Thus, both LIG and highest demand-supply gap for HIG units. crore for this year to the National Housing MIG will account for nearly 80 per cent of The private sector housing, which is Bank to build affordable urban homes and the total demand in these eight cities. City Wise-Category Wise The expected supply of residential units including existing under Estimated Demand (2014-18) Estimated Supply (2014-18) construction and planned pipeline No. of Units LIG MIG HIG LIG MIG HIG is estimated to be 1.31 million housing units which is expected to Mumbai 75,700 107,300 48,400 2,400 73,400 127,600 be delivered across the top eight Ahmedabad 114,300 104,500 29,200 6,900 34,300 3,000 cities by the end of 2018. The bulk of the under-construction units have Bengaluru 134,500 194,100 110,000 70,100 136,800 35,600 already been sold. Delhi-NCR is Chennai 142,900 127,900 63,600 7,700 88,600 5,400 likely to have the highest supply of around 516,000 units delivered Delhi-NCR 328,700 333,700 156,100 153,300 315,900 46,300 in the next five years, followed by Hyderabad 121,600 105,700 64,100 10,200 38,000 12,600 Bengaluru with around 243,000 units and Mumbai with 203,000 units. Kolkata 51,200 33,500 12,600 16,000 35,300 14,300 Until 2018, the expected supply in the LIG will be approximately 21 per Pune 80,700 76,200 34,300 12,100 55,600 9,800 cent of the total supply across top TOTAL 1,049,600 1,082,900 518,300 278,700 777,900 254,600 Note: Differences, if any, are due to round-off 20 construction opportunities|NOVEMBER 2014