Real estate dynamics in India

The demand for affordable housing in top seven Indian cities is likely to outstrip supply by 2015, according to Cushman & Wakefield. The real estate consulting firm in its annual report found that the estimated demand for residential property in cities namely National Capital Region, Mumbai, Bangalore, Chennai, Hyderabad, Pune and Kolkata is expected to touch 2.3 million units over the next five years while the estimated supply will be approximately 1 million units, leaving a shortfall of 130 per cent i.e. over 1.3 million units.

The residential property market is growing at a Compound Annual Growth Rate of 11 per cent and the estimated volume requirement across the country will be 3.94 million housing units, including 2.3 million units in the seven cities. Interestingly, the gap between demand and supply is likely to be intense in the affordable housing segment, whose demand is growing approximately three times more than the supply.