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With an estimated overall demand-supply gap of around 231,000 units until 2018, Hyderabad is likely to witness one of the highest shortfalls due to the comparatively low supply scheduled to be delivered in the next five years, according to the latest study by real estate consultancy Cushman & Wakefield.
By 2018, Hyderabad is expected to witness an additional demand for around 2,91,000 units across all segments. Of this, the lower income group is expected to be 42 per cent and the MIG around 36 per cent. Steady growth in services sector, mostly driven by IT-ITeS sector, has been responsible for migration of people from across the country to the city.
With the political uncertainty over the Telangana issue being sorted and considering that the city already possesses ready physical and social infrastructure, Hyderabad is poised for higher growth.
As companies begin expanding their operations in the city, housing demand is likely to increase significantly.
Sanjay Dutt, Executive Managing Director, South Asia, Cushman & Wakefield, in a statement said: “The private sector housing, which is largely responsible for creating housing in India, has been grappling with many issues such as rising input costs, expensive land valuations, outdated building norms, restricted access to funding, serious delays in regulatory processes and uncertain economic conditions resulting in poor and/or slow sales volumes, all of which have resulted in holding back the growth of this sector since the last 2-3 years. Consequently, the demand-supply imbalances across cities have been becoming more pronounced.”
The additional or new demand that is expected to be generated in 2014-2018 is calculated based on the past trends of population and household growth and the income classification for households.
National demand
The total new demand for urban housing in India is expected to be nearly 13 million units by the end of 2018 on account of the burgeoning population in urban centres. This is in addition to the already existing unmet demand. Of the total additional demand, the top eight cities are likely to constitute 23 per cent or 2.95 million units.
Delhi-NCR is likely to have the highest supply of 516,000 units over the next five years, followed by Bangalore with around 2,43,000 units and Mumbai with 2,03,000 units, as per the report.
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