2.1 Million Housing Demand to Come from Top 8 Cities

Bangalore: In India, the demand for housing will be around 11.8 million units during 2012-16, according to Cushman & Wakefield report. Cushman & Wakefield together with Global Real Estate Institute (GRI) brought out the annual report "Evolving Paradigm – Future of Indian Real Estate."

However, out of this total demand, nearly 2.1 million or 18 percent will come from top 8 Indian cities, reports V. Rishi Kumar of Business Line.

Out of the total demand from top 8 cities, the demand for mid-segment housing will be around 59 percent or 1.3 million units, which is likely to be the highest, followed by the demand for luxury housing which will be 4,51,000 units. Besides, the demand for low-end housing will be 3,62,000 in the next five years.

"The demand creation in leading 8 cities is reflective of the economic strength that these cities have. We see a higher demand in the mid-ranged segment in these cities." said Sanjay Dutt, Executive Managing Director, C&W India, reports Business Line.

The total number of housing demand is likely to rise by 2.8 percent, at a compound annual growth rate across the country. While, Bangalore estimated to witness the highest demand growth rate of 4.1 percent followed by Pune and Hyderabad.

During 2012-2016, NCR probably will see the maximum housing demand of 381,000 units in mid and luxury housing segments. Whereas, around 45 percent of housing demand in mid and luxury segment will come from Southern cities like Bangalore, Chennai and Hyderabad with 338,546 units, 257,796 units and 199,575 units, respectively.

For mid and luxury housing, Mumbai will account for 188,708 units of the demand, followed by Ahmedabad, Pune and Kolkata with 173,394 units, 144,422 units and 77,000 units, respectively.