Mumbai will see the highest demand for urban housing after Delhi-NCR in the next five years, say a report by Cushman & Wakefield and GRI titled Revitalising Indian Real Estate: A new era of growth & investment. The total demand for urban housing is estimated at 4.2 million units during 2016-20 across top eight cities such as Delhi-NCR, Mumbai, Bengaluru, Chennai, Kolkata, Pune, Hyderabad, and Ahmedabad, says the report.
The urban housing demand is the highest in Delhi-NCR, forming nearly 24-26 per cent of the demand in all three segments. Mumbai and Bengaluru follow, and are expected to generate demand of about 711,000 and 686,000 units, respectively, over the next five years.
While a majority of the demand within Mumbai is from the middle income group, the lower income group accounts for the most in Bengaluru. In most of the cities except Mumbai, developers are focusing on the middle income group with 60-70 per cent of the upcoming supply concentrated in this segment.
In Mumbai, majority of the supply is likely to cater to the high income group, with supply of catered to the lower income group likely to be among the lowest in Mumbai, says the report.
“Despite encouragements from the government through taxation and funding relief, under the Housing for All 2022 vision, top cities of India have not seen a significant shift in supply for reduced sized apartments within the middle income or lower income group. Further, the recent move to demonetise large currencies in order to crack down on black money, the demand for high income group and luxury housing could temper further. This is expected to propel developers to recalibrate their plans to suit the high demand segments of affordable housing,” says Anshul Jain, Managing Director, India, Cushman & Wakefield, consultancy firm.