Dedicated locality research platform
Dedicated locality research platform
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In a collaborative effort, CREDAI and Liases Foras released a comprehensive industry report at the New India Summit in Varanasi, projecting a surge in India's housing demand to 93 million units by 2036. This substantial growth is attributed to increased demand stemming from population growth in urban and rural areas, positive macro-economic indicators, and favorable demographics. Notably, Tier II and III cities will play a key role in driving both demand and supply.
The report underscores the influence of government initiatives, especially Smart Cities programs, and the rising commercialization activities in emerging areas, signaling that the next phase of real estate growth will likely be from these Tier II and III regions.
Highlighting the developments in 2023, the report indicates a significant uptick in registrations and homebuyer interest, with over 19,050 RERA registrations at the pan-India level. Notably, 45% of these registrations pertained to projects in the residential segment.
Delving into the existing housing inventory scenario, the report reveals that the national inventory stands at 10,42,195 units. While witnessing a 3% decline on a quarter-to-quarter (QoQ) basis, there is a 2% increase on a year-to-year (YoY) basis. Cities like MMR and Ahmedabad experienced a notable decline in the ending quarter of September 2023. Tier II cities, driven by robust demand, also saw a reduction in inventory, currently holding a 20-month inventory value in QE September 2023.
From a pricing perspective, the report indicates a 6% Compound Annual Growth Rate (CAGR) in apartment prices, reaching Rs 11,660 per square foot. The National Capital Region (NCR) stands out with the highest growth rate at 22%.
Further insights from the report include the percentage change in sales for both apartments and plots, as well as carpet prices across major emerging cities. Noteworthy cities in this regard include Nagpur, Bhopal, Surat, Lucknow, Chandigarh, Coimbatore, Jaipur, Cochin, and Visakhapatnam.
Overall, the report provides a comprehensive outlook on the dynamics of India's real estate landscape, emphasizing the critical role played by Tier II and III cities in shaping the future of the housing market. With a focus on key parameters and significant trends, it serves as a valuable resource for stakeholders navigating the evolving real estate terrain.
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