Housing Demand in India Projected to Reach 93 Million by 2036: CREDAI – Liases Foras Report
CREDAI, in collaboration with Liases Foras, launched an industry report at the New India Summit in Varanasi, which revealed that the housing demand in India is projected to reach 93 million houses by 2036. This is primarily owing to the increase in demand in housing basis growth in key parameters including population in both urban and rural areas, healthy macro-economic indicators and favorable demographics, with several Tier II, III cities projected to spearhead both demand and supply. With Government programs to establish Smart Cities, along with increasing commercialization activities in emerging areas, it is widely expected that the next wave of real estate growth will stem from Tier II, III regions.
Last year 2023, witnessed high volume of registrations and interest from homebuyers, also oversaw over 19,050 RERA registrations at Pan India level, according to the report – with 45% projects falling in the residential segment.
Photo: Pan India Market Summary: CREDAI – Liases Foras ReportQ3 FY 23-24
The report further throws light on the existing housing inventory, which at a pan India level, currently stands at 10,42,195 units, declining 3% on a QoQ basis but increasing by 2% on a YoY basis.Cities such as MMR and Ahmedabad witnessed a steep decline in the September 2023 ending quarter. Tier II cities, on the back of robust demand, also saw a drop in inventory and currently has a value of 20 months in inventory in QE September 2023.
Photo: Unsold/ Existing Inventory Pan India
From a pricing perspective, the report reveals that there has been a 6% CAGR in apartment prices (at Rs 11,660 per square feet), with NCR witnessing the highest growth at 22%.
The report also reveals the % change in sales (apartments and plots), and carpet prices across major emerging cities including Nagpur, Bhopal, Surat, Lucknow, Chandigarh, Coimbatore, Jaipur, Cochin, Visakhapatnam.
| Sep-22 | Sep-23 | % Change | ||
| Nagpur | Carpet Price | 5691 | 6470 | 12.04 |
| Sales | 1407 | 1896 | 25.79 | |
| Bhopal | Carpet Price | 4916 | 6370 | 22.83 |
| Sales | 1766 | 1931 | 8.54 | |
| Surat | Carpet Price | 6917 | 7336 | 5.71 |
| Sales | 3216 | 3682 | 12.66 | |
| Lucknow | Carpet Price | 6539 | 8374 | 21.91 |
| Sales | 1316 | 1603 | 17.9 | |
| Chandigarh | Carpet Price | 7588 | 8340 | 9.02 |
| Sales | 2092 | 2387 | 12.36 | |
| Coimbatore | Carpet Price | 7030 | 7931 | 11.36 |
| Sales | 820 | 1039 | 21.08 | |
| Jaipur | Carpet Price | 5811 | 5972 | 2.7 |
| Sales | 2735 | 2813 | 2.77 | |
| Cochin | Carpet Price | 8298 | 8350 | 0.62 |
| Sales | 479 | 614 | 21.99 | |
| Vizag | Carpet Price | 8840 | 8958 | 1.32 |
| Sales | 577 | 767 | 24.77 | |
| Sales number and percentage are a total of apartment and plots/villa | ||||
Boman Irani, President, CREDAI, said, “The rapidly growingIndian population and economy has resulted in accelerated demand and supply of homes, while also improving home buyers’ purchasing power and inclining them to buy bigger houses. The country is set to develop manifold in the next 10-15 years and hence, through this report we look towards setting a new precedent with the emergence of Tier II, III regions and their contribution towards the sector and economy. Housing in such cities will witness a sharper trajectory as crucial Government Programs and increasing commercialcommercialization activities come to the fore to create a strong pipeline of projects across all segments.”
Manoj Gaur, Chairman, CREDAI “2023 was a remarkable year for all real estate stakeholders and we expect this demand trajectory to sustain, in 2024 and beyond. The report shares some key insights on the strong foundations of the industry and economy that are set to propel more investments, while also throwing light on how Tier II,III cities have fared amidst increased real estate activities. India is widely slated to become the third largest economy of the world by 2030, and since this vision seems to be turning into reality in a rather short span of time, we believe that real estate development, especially in emerging areas, will be a principal component of this positive change.”
Pankaj Kapoor, Founder and Managing Director, Liases Foras, “Indian Real Estate currently stands at an extremely important junction – with sustained demand and supply greatly contributing to the GDP while showcasing a definitive way forward for reaching the $5 Trillion Goal. Through this report, we have highlighted some of the most important industrial parameters that reflect the overall growth of Indian Real Estate, including sales, RERA registrations, carpet prices, among others. The report not only strengthens the belief in real estate as a robust industry but also validates investor and homebuyer sentiments as we enter 2024 and finish the financial year on a high.”