Housing Demand in India to grow three fold

Housing demand in India is projected to grow more than threefold and reach 93 million units by 2026 spurred by robust demand and supply in several tier-II and –III cities, according to Confederation of Real Estate Developers’ Associations of India (CREDAI). Demand stood at 30 million units in 2021.

The surge in demand will be fuelled by population growth in both urban and rural areas, healthy macroeconomic indicators, the industry body said in a report, prepared in association with real estate data analytics firm Liases Foras.

With the government planning to set up smart cities, along with increasing commercial activity in emerging regions of the country, it is widely expected that the next wave of real estate growth will stem from the tier II and III markets.

“The rapidly growing Indian population and economy has resulted in accelerated demand and supply of homes, while also improving home buyers’ purchasing power and inclining them to buy bigger house,” CREDAI said.

“India is widely slated to become the third largest economy of the world by 2030, and since this vision seems to be turning into reality in a rather short span of time, we believe that real estate development, especially in emerging areas, will be a principal component of this positive change,” said CREDAI.

From a pricing perspective, the report found that there was a 6% compound annual growth in apartment prices between 2021 and 2023 (at Rs 11, 660 per sqft) with the National Capital Region witnessing the fastest growth at 22%.

“Indian real estate currently stands at an extremely important junction – with sustained demand and supply greatly contributing to GDP while showcasing definitive way forward for reaching the $5 trillion goal,” said ses Foras.