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.
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.
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.
