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India’s Housing Demand Soars, Expected to Reach 93 Million by 2036: Credai-Liases Fora
In a groundbreaking revelation at the New India Summit in Varanasi, CREDAI, in collaboration with Liases Foras, unveiled an industry report projecting India’s housing demand to surge to a staggering 93 million houses by 2036. This surge is attributed to various factors, including population growth in both urban and rural areas, positive macro-economic indicators, and favorable demographics. The report anticipates that Tier II and III cities will play a pivotal role in driving both demand and supply, fueled by government initiatives such as the establishment of Smart Cities and increasing commercialization activities in emerging areas.
Real Estate Resilience in 2023
The year 2023 witnessed a remarkable surge in registrations and homebuyer interest, overseeing over 19,050 RERA registrations nationwide, with nearly half of them in the residential segment. However, the report also sheds light on the existing housing inventory, standing at 10,42,195 units pan India. While there was a 3% quarterly decline, there was a notable 2% year-on-year increase. Notably, cities like MMR and Ahmedabad experienced a steep decline in the last quarter of September 2023. Tier II cities, driven by robust demand, also witnessed a drop in inventory, currently holding a 20-month supply in QE September 2023.
Pricing Dynamics in the Real Estate Market
From a pricing perspective, the report reveals a 6% Compound Annual Growth Rate (CAGR) in apartment prices, reaching Rs 11,660 per square feet, with NCR exhibiting the highest growth at an impressive 22%. The report also discloses the percentage change in sales for both apartments and plots, along with carpet prices in major emerging cities, including Nagpur, Bhopal, Surat, Lucknow, Chandigarh, Coimbatore, Jaipur, Cochin, and Visakhapatnam.
Vision for the Future
Boman Irani, President of CREDAI, emphasized the accelerated housing demand due to India’s rapidly growing population and economy. He anticipates a manifold development in the next 10-15 years, especially in Tier II and III regions, driven by crucial government programs and increased commercialization activities. Manoj Gaur, Chairman of CREDAI, expressed optimism, stating that 2023 was a remarkable year for real estate stakeholders, with expectations that this demand trajectory will sustain in 2024 and beyond.
A Positive Outlook – Fulfilling Housing Demand in India
Pankaj Kapoor, Founder and MD of Liases Foras, positioned Indian real estate at a crucial junction, highlighting the industry’s significant contribution to the GDP. He sees the sector as a key player in achieving the ambitious $5 Trillion Goal. The report not only reinforces real estate as a robust industry but also validates investor and homebuyer sentiments as we step into 2024, concluding the financial year on a high note.
In conclusion, the housing demand in India is poised for substantial growth, with demand expected to reach unprecedented levels by 2036. The collaborative efforts of CREDAI and Liases Foras provide valuable insights into the industry’s resilience, pricing dynamics, and the pivotal role of Tier II and III cities in shaping the future. As India strides towards becoming the world’s third-largest economy by 2030, real estate development, particularly in emerging areas, is set to be a driving force in this positive transformation.
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