CREDAI and Cushman & Wakefield Launch Report “Embracing Change – Exploring Growth Market in Indian Housing”

CREDAI in partnership with Cushman & Wakefield released a report entitled “EMBRACING CHANGE - Exploring Growth Market for Indian Housing” at its National Convention 2016 at Shanghai, China on August 5, 2016. The report begins by tracing the major factors at work which determine housing demand and supply today. According to the report, healthy economic growth coupled with government initiatives such as industrial corridors, development of expressways, Smart Cities Mission and Atal Mission for Rejuvenation and Urban Transformation would improve the liveability of tier II and tier III cities.

Report anticipates the Real Estate Regulation and Development Act, 2016 along with Real Estate Investment Trusts and the FDI Policy to be important elements in determining how housing sector fairs in the near to mid- term. Development of industrial corridor along the major access is identified by the report as important factor in dispersal of urbanization to tier I and tier II locations. The report observes that smart cities programme will provide opportunities for the real estate sector as 89% of proposed INR 48,000 Crores investment in first 20 such cities would be earmarked towards urban development, housing, transformation, water and energy.

In the metros, the hubs likely to witness an explosion of activity over the next few years are spread across among others North Bengaluru Belt, Chennai, Gachi Bowli in Hyderabad, New Town in Kolkata, Navi Mumbai and Pockets of Pune. The report goes into the local factors driving each hub. At the countrywide level, the housing demand in urban areas is expected to be nearly 12 million units during 2016-20. The report identifies high potential growth cities to be the followings:  Bhubaneswar, Chandigarh, Coimbatore, Indore, Jaipur, Kochi, Lucknow, Nagpur, Surat, Vadodara and Vishakhapatanam.  

The report concludes by observing that national developers are likely to foray into smaller markets to cater to expected demand.