As the major cities in India are in need to meet the demand of 4.3 million houses during the period of 2016-2020, NCR tops the list by covering 24% of the total housing demand – according to a report released recently.
Currently, approximately 1.0 million of the under-construction and planned houses are expected to be delivered by the end 2020 across the major 8 cities. Whereas NCR regions – Gurgaon, Noida, Ghaziabad, and Faridabad regions alone will garner 1 million units i.e. 24% of the total demand.
It was also noticed in the report that the low income group or LIG (below ₹15 Lakh) segment is running low to their services and hence, is the most under-service segment. The segment, thus, is most likely to be expected to deliver approximately 1.98 million units by 2020 while the private sector supply will be limited to around 25,000 units.
On the other hand, middle income group or MIG (₹15 – 70 Lakh) will cater 6,47,000 units i.e. 63% of total housing demand across all eight selected cities although the whopping demand for the same is around 14, 57, 000 units.
For High income group or HIG (above ₹70 Lakh) properties, there is no expectation from the developers in this category as the price of the category is expected to surpass the buyer’s financial reach. Properties under this category have been excluded either due to more-than-affordable price or the locations. One can consider it a post-demonetisation effect. Although the demand for housing is outstripping the supply, the segment bears a considerable proportion of unsold and unentertained inventory.
Developers are not preferring to go with the projects with small-sized houses and city-centre locations for the reason they will be facing drastic reduction in the profitability.
Following the NCR is the Mumbai city in terms of delivering high demands of houses which in turn will be followed by Kolkata where the highest numbers of LIG units will be launched by 2020.