Eight major cities in India will face a housing shortage of 600,000 units, according to a Cushman & Wakefield report calculating expected residential demand.
Total demand for new residential property in India will be 11.8 million units over the period to 2016, according to Cushman & Wakefield.
Eight cities - NCR, Mumbai, Pune, Ahmedabad, Bengaluru, Chennai, Hyderabad and Kolkata - will constitute 18 percent of total demand, Cushman & Wakefield’s Evolving paradigm - Future of Indian Real Estate report says.
Meanwhile, total mid and high-end housing supply across the eight cities is estimated at 1.16 million units over the period to 2016.
According to the report, there is a shortfall in new housing supply of approximately 600,000 units across the eight cities.
Sanjay Dutt, Cushman & Wakefield executive managing director, India, says demand in the top eight cities is reflective of their economic strength.
“[Economic strength] attracts new settlers, [and] creates conducive environment for natural population growth,” Dutt says.
“We see a higher demand in the mid-ranged segment in these cities," he says.
According to the report, within the top eight cities, mid-range housing will see highest demand at 59 percent of the total, or 1.3 million units. High-end demand is estimated to be 451,000 units in these cities, and low-end 362,000 units.
NCR is expected to see highest demand of the eight cities, of 381,000 mid and high-end housing units.
The report calculates demand based on past population, household growth and income trends.
It does not take into account existing unfulfilled demand, which it says the Ministry of Housing and Urban Poverty Alleviation estimates to be 18.78 million units for the whole of India.