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| Housing demand to cross 75 lakh units in 5 yrs: report |
| Press Trust of India / New Delhi Sep 23, 2009, 21:40 IST |
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The total demand for housing in the country is likely to cross 75 lakh units within the next five years, while the same for commercial spaces will touch 195 million sq ft, signalling a revival in the realty sector.
According to a report by global real estate consultant Cushman & Wakefield (C&W), the cumulative demand in the residential sector will be about 75.43 lakh units between 2009 and 2013.
The demand in the housing segment this year is estimated to be 11.96 lakh units and is expected to grow by over 55 per cent to reach 18.64 lakh units in 2013, it added.
"Though the high growth trajectory of the previous years saw a setback during the global economic slowdown, the inherent strong economic fundamentals, low exposure to debt and state intervention, would help the sector to gradually return to the path of recovery and witness robust demand for real estate across sectors," C&W Managing Director (India) Anurag Mathur said.
Mumbai is expected to see the highest demand for residential space of about 16.4 lakh units in the five years due to the large scale urbanisation, followed by the National Capital Region (10.2 lakh) and Bangalore (5.7 lakh), the report said.
In the commercial space, C&W said the total five-year demand would be 196.3 million sq ft from the estimated 26.5 million sq ft in this year. In 2013, the demand is expected to be 53.9 million sq ft.
"Though the office market is expected to witness a fall in demand in 2009 with an expected absorption of 27 million sq ft, the period from 2010 onwards will see the markets experience a healthier demand with a compound annual growth rate (CAGR) of 19 per cent in 2009-2013," the consultant said.
Of the total commercial demand, about 42 per cent is expected to be generated in the Tier I and II cities.
The highest demand in five years is expected to be in Bangalore at 34 million sq ft, followed by Chennai at 27 million sq ft.
The demand for the hospitality sector is expected to see a surge and is likely to be about 6.91 lakh room nights between 2009-2013.
"While the upcoming Commonwealth games in 2010 have been the key demand driver for the hospitality segment in NCR, the significant expected rise in office demand in the peripheral locations is also likely to play a role is boosting room night demand," Mathur said.
The retail sector is expected to see a demand of about 43 million sq ft, mostly concentrated in Tier I and II cities. Bangalore would see the highest demand of about 6.83 million sq ft.
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