25 Million More Affordable Housing Units Required By 2030
Indian Real-Estate Industry is expected to reach USD one trillion by 2030 according to a joint report by National Real Estate Development Council (NAREDCO) and E&Y. The industry was valued at USD 200 bn in 2021 and would move to the projected value of USD one trillion in the next 7 years on account of it huge potential. The sector is likely to contribute 18-20% to India’s GDP by 2030. The report further said that there is a favorable demand-supply gap which will propel the growth of this sector even though the current shortage of housing in urban areas is estimated to be 10 mn units. Additional 25 mn units of affordable housing are required by 2030. On term loan and construction finance, the report points out that generally a term loan is available to 30-35% of the project. It is difficult to fund cost overruns in case of project delays and repayments begin prior to the generation of surplus cash flows. The report also highlights that representative reasons for delays include delays in approval, land acquisition and low pre-sales.
Tags : Indian Real Estate Industry National Real Estate Development Council India GDP loan