4.2 million homes needed across top eight cities
The total demand for urban housing is estimated at 4.2 million units during the period 2016-2020 across the top eight cities, as per report released by Cushman & Wakefield and GRI mentioned. Anshul Jain, Managing Director, India, Cushman & Wakefield said, "At the ground level, despite demand grossly outstripping supply, there is a considerable proportion of unsold inventory in the MIG and HIG categories, which are not absorbed as these properties are unable to demonstrate value for their buyers. Such units fall out of preference either on account of higher-than-expected prices or due to locations. Lack of funds and high land and development costs are the primary reasons for developers not opting for smaller sized units closer to city centres as profitability drastically reduces. Despite encouragements from the government through taxation and funding relief, under the Housing for All 2022 Vision, top cities of India have not seen a significant shift in supply for reduced sized apartments within the MIG or LIG. Further, the recent move to demonetize large currencies in order to crack down on black money, the demand for HIG and Luxury housing could temper further. This is expected to propel developers to recalibrate their plans to suit the high demand segments of affordable housing."
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