The demand for housing in India is expected to surge to 93 million units by 2036, according to a recent report by the Confederation of Real Estate Developers’ Associations of India (Credai) in collaboration with Liases Foras. This upward trajectory is attributed to several factors, including population growth in both urban and rural areas, positive macro-economic indicators and favourable demographics. The report highlights the significant role that tier-2 and tier-3 cities are expected to play in driving both demand and supply in the real estate sector.
The report emphasises that the government’s initiatives to establish Smart Cities, coupled with the rise in commercialisation activities in emerging areas, will contribute to the next phase of real estate growth, primarily led by tier-2 and tier-3 cities. Approximately 44% of the 3,294 acre of land acquired by real estate developers were in these regions, signalling accelerated growth in these cities beyond earlier projections.
In the past year, there was a notable surge in registrations and interest from homebuyers, with over 19,050 projects (45% residential projects) registered under the Real Estate Regulatory Authority (Rera) across the country. The current unsold inventory on a pan-India basis stands at 10.4 lakh units, showing a 3% sequential decrease but a 2% increase compared to the previous year. Stalled projects, primarily launched before 2016, constitute over one-fourth of the unsold inventory. The Mumbai Metropolitan Region alone holds more than one-fifth of the total unsold stock.
Regarding pricing trends, the report indicates a Compound Annual Growth Rate (CAGR) of 6% in apartment prices, reaching Rs 11,660 per square foot (sqft). The National Capital Region (NCR) witnessed the highest growth at 22%, reflecting the dynamic nature of the real estate market across different regions.
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Dhwani is a content management expert with over five years of professional experience. She has authored articles spanning diverse domains, including real estate, finance, business, health, taxation, education and more. Holding a Bachelor’s degree in Journalism and Mass Communication, Dhwani’s interests encompass reading and travelling. She is dedicated to staying updated on the latest real estate advancements in India.
Email: dhwani.meharchandani@housing.com
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