Urban housing to expect huge demand rise of 4.2 million units

urban housingThe coming next four years of the decade are going to witness a huge rise in the demand for urban housing so much so that the figure of demand is expected to reach 4.2 million units. This can be concluded out of a recent report that was done on top eight cities.

During this period, the ongoing projects of private developers will supply people with nearly 1 million housing units across top eight cities. The Delhi-NCR region which comprises of NCT, Faridabad, Gurgaon, Ghaziabad and Noida remains in the state of continuously assembling the greatest proportion of demand accounting to 24 percent by the end of the year 2020.

The segment which caters the people of lower income group is the most under-serviced segment. The demand for the segment will be reached to 1.98 million units by the year 2020 but the supply is barely 25,000 units by private developers.

Similarly, the segment which accounts for the MIG or middle-income group, i.e., between Rs. 15 – 70 Lakh has a supply for 63 percent at 647,000 units of the complete housing supply in all eight cities. The demand for this segment is as much higher at 14,57,000 units.

The main reason cited by developers for not opting for smaller sized units is a lack of funds and high land and development costs. The government induces encouragements such as taxation and funding relief in top cities of India, under the Housing for All 2022 vision. Still, not much significant shift has been seen in supply for these reduced sized apartments within MIG or LIG segments. But during the period of 2016-2020, the region of Delhi-NCR is supposed to have the largest market in all the 3 sections.

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