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Metros' housing shortage seen at 1.3 mn

New Delhi, The Financial Express

October 04, 2011

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Housing supply is estimated to fall short of demand by 1.3 million units in seven major cities of the country during the next five years, according to a report by global property consultant Cushman & Wakefield.

Cushman & Wakefield (C&W) has estimated "a total demand of 2.3 million units of residential property in the next five years, while the estimated supply in the same period is expected to be approximately 1 million units, leaving a shortfall of over 1.3 million units".

In its report 'Embracing Change -- Scripting the future of Indian Real Estate', C&W conducted the survey in the National Capital Region (NCR), Mumbai, Bangalore, Chennai, Hyderabad, Pune and Kolkata for 2011-2015 period.

"The housing demand-supply scenario and the resulting gap is likely to reduce in the next five years. However, the upcoming supply needs to be priced judiciously along with appropriate location, infrastructure, connectivity, relevant features and amenities to ensure absorption," C&W India Executive Director Akshay Kulkarni said.

The report said NCR is expected to record highest demand of over 7 lakh units, followed by Mumbai and Bangalore with demands of 6.51 lakh units and 2.87 lakh units, respectively.

The study further said the mid-range housing segment is expected to drive the maximum demand of 45 per cent.

"Majority of the developers in the top seven cities are concentrating on this segment, which would help reduce the supply-demand gap," it added.

Besides, the affordable housing segment is likely to register about three times more demand than supply and it will see the gap increasing during the next five years, C&W said.

"We understand that majority of the supply will be for mid-ranged housing. However, there is a very large latentdemand for lower income group (LIG) and economically weaker sections (EWS) housing," Kulkarni said.

Several states across India are considering allocating a percentage of developed land to LIG and EWS segments in order to meet the demand arising from this segment, he added.

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