Housing demand set to touch 93 million by 2036
Housing demand in India is projected to grow more than threefold and reach 93 million units by 2036 spurred by robust demand and supply in several tier-II and -III cities, according to Confederation of Real Estate Developers’ Associations of India (CREDAI).
Demand stood at 30 million units in 2021.
The surge in demand will be fuelled by population growth in both urban and rural areas, healthy macroeconomic indicators, and favourable demographics, the industry body said in a report, prepared in association with real estate data analytics firm Liases Foras.
With the government planning to set up smart cities, along with increasing commercial activity in emerging regions of the country, it is widely expected that the next wave of real estate growth will stem from the tier II and III markets.
“The rapidly growing Indian population and economy has resulted in accelerated demand and supply of homes, while also improving home buyers' purchasing power and inclining them to buy bigger houses,” CREDAI president Boman Irani said.
In 2023, the industry recorded 19,050 project registrations across the country with the Real Estate Regulatory Authority (RERA), with 45% of these in the residential segment, the report said.
Housing inventory at the end of the December quarter totalled 10,42,195 units, declining 3% sequentially but rising 2% from a year earlier.
Tier-II cities, on the back of robust demand, saw a drop in inventory to 20 months at the end of December, it said.
“India is widely slated to become the third largest economy of the world by 2030, and since this vision seems to be turning into reality in a rather short span of time, we believe that real estate development, especially in emerging areas, will be a principal
