A recent report by CREDAI-Liases Foras highlights the growing demand for housing in India, driven primarily by population growth. Let’s delve into the key findings and projections outlined in this report.
Population Growth Impact
According to the joint report by CREDAI and Liases Foras, India will require an additional 6.4 crore homes by the year 2036 due to population expansion. This surge in housing demand is a direct consequence of the country’s burgeoning population.
Current Housing Shortage
The report emphasizes that in 2018, India already faced a housing shortage of 29 million homes. Consequently, the total estimated housing demand by 2036 is projected to reach a staggering 93 million units.
Emerging Real Estate Growth Centers
One notable observation in the report is the anticipation of the next wave of real estate growth originating from Tier II and III regions. These emerging markets are expected to play a pivotal role in meeting the escalating demand for housing.
Trends in Housing Demand
The past year witnessed robust housing demand, with over 19,050 registrations under the Real Estate (Regulation and Development) Act (RERA) across India. Notably, 45% of these registered projects were in the residential segment, indicating sustained interest in homeownership.
Industry Perspectives
Boman Irani, President of CREDAI, attributes the surge in housing demand to India’s rapidly growing population and economy. He notes that increased purchasing power among homebuyers is driving demand for larger homes.
Manoj Gaur, Chairman of CREDAI, expresses optimism about the continued growth trajectory of the real estate sector, expecting the demand momentum witnessed in 2023 to persist in the coming years.
Pankaj Kapoor, Founder and Managing Director of Liases Foras, underscores the pivotal role of the real estate sector in India’s economic landscape. He highlights sustained demand and supply dynamics as significant contributors to GDP growth, aligning with the country’s ambitious goal of achieving a USD 5 trillion economy.
In conclusion, the CREDAI-Liases Foras report underscores the critical need for proactive measures to address India’s escalating housing demand, particularly in emerging urban centers and Tier II, III cities.
