India's Housing Market Projected To Surge With Growing Demand, Reveals CREDAI Report
A recent report jointly released by CREDAI (Confederation of Real Estate Developers' Associations of India) and Liases Foras indicates a substantial growth in housing demand in India, with projections reaching 93 million houses by 2036.
The report attributes this surge to various factors, including the population growth in both urban and rural areas, favourable macro-economic indicators, and demographic trends. It emphasises the role of tier-II and tier-III cities in spearheading both the demand and supply of housing, especially with government initiatives to establish Smart Cities.
The year 2023 marked a significant increase in homebuyer interest, witnessing over 19,050 RERA registrations at the pan-India level, with 45 per cent of projects falling under the residential segment.
The existing housing inventory stands at 10,42,195 units at the national level, experiencing a 3 per cent decline on a quarterly basis but a 2 percent increase year-on-year.
Notably, tier-II cities, driven by robust demand, saw a decrease in inventory, currently holding a 20-month supply in the quarter ending September 2023.
From a pricing perspective, the report reveals a 6 per cent Compound Annual Growth Rate (CAGR) in apartment prices, averaging Rs 11,660 per square foot, with the National Capital Region (NCR) witnessing the highest growth at 22 percent.
The report also highlights the percentage change in sales (apartments and plots) and carpet prices across major emerging cities, including Nagpur, Bhopal, Surat, Lucknow, Chandigarh, Coimbatore, Jaipur, Cochin, and Visakhapatnam.
Boman Irani, President of CREDAI, emphasised the accelerated demand and supply of homes, driven by India's growing population and economy. He sees tier-II and tier-III regions playing a crucial role in the sector's growth, anticipating a sharper trajectory in housing development as government programs and commercialisation activities gain momentum.
Manoj Gaur, Chairman of CREDAI, expressed optimism about the sustained demand trajectory in 2024 and beyond, highlighting the strong foundations of the industry and the economy. He believes that real estate development, especially in emerging areas, will be a key component of India's journey towards becoming the third-largest economy globally by 2030.
