Housing Stock and Demand
The demand for housing units in the top 112 cities is expected be 10.5 million units during the next 7 years leading up to 2015
The Housing Skyline of India estimates the demand for housing units in the top 112 cities to be 10.5 million units during the next 7 years leading up to 2015. The current stock of housing units in these cities is estimated to be 41.8 million units, which implies a growth in housing stock of over 25% within 7 years
Of these 112, the top 30 cities will account for 60% of the demand and are expected to add 6.36 million units during the next 7. The current stock of housing units in these 30 cities is estimated to be 25 million units.
Stock of Houses > 1000 sq feet plinth area
| The top 112 Cities | Figures in millions |
| Households with Plinth Area Less than 500 Sq ft |
17.0 |
| Households with Plinth Area Between 500-1000 Sq ft |
12.5 |
| Households with Plinth Area More than 1000 Sq ft |
12.3 |
| Demand for units (2008-2015) for Plinth Area Less than 500 Sq ft |
3.5 |
| Demand for units (2008-2015) for Plinth Area Between 500-1000 Sq ft |
3.4 |
| Demand for units (2008-2015) for Plinth Area More than 1000 Sq ft |
3.7 |
| The top 30 Cities | Figures in millions |
| Households with Plinth Area Less than 500 Sq ft |
10.01 |
| Households with Plinth Area Between 500-1000 Sq ft |
7.48 |
| Households with Plinth Area More than 1000 Sq ft |
7.55 |
| Demand for units (2008-2015) for Plinth Area Less than 500 Sq ft |
2.14 |
| Demand for units (2008-2015) for Plinth Area Between 500-1000 Sq ft |
2.07 |
| Demand for units (2008-2015) for Plinth Area More than 1000 Sq ft |
2.15 |
Whereas most of the attention of the building industry is on the upper segment, it is middle and lower middle India which is driving demand -
- The demand for housing of size less than 1000 sq ft is 6.2 million units over 7 years, which is 2/3rd of the demand
- The anticipated growth in percentage terms in the lower segments (23% combined) is lower than the upper segment (30%), but on a base which is nearly two and a half times.
- The pattern is similar for the alpha (top 10) and beta (the next 20) cities, implying a uniform demand for affordable housing.
The above pattern indicates that a renewed focus on affordable housing is in order. There is plenty of demand out there; supply is more likely to be the constraint.
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