India will see a shortage of 31.2 million housing units by 2030, making a market size of Rs.67 lakh crore possible for potential real estate developers. According to a report by industry body CII and real estate consultant Knight Frank India, there is currently a shortage of 10.1 million units.
Ghulam Zia, Senior Executive Direct, Knight Frank India, said there is a huge opportunity for real estate developers, stating that there is a large-scale shortage of affordable housing in India. The affordable housing segment also provides many opportunities for financial institutions. With 77% reliance on loans, the affordable housing segment has a financing opportunity of Rs.45 lakh crore for banks and housing finance companies. It represents a significant three-fold increase over the current loan volume in this segment. Vipul Rungta, MD & CEO, HDFC Capital emphasized on operations as well as appropriate marketing strategies for the affordable and mid-income housing segment.
Rungta further added that his company focuses more on lending to the middle and low-income housing segment, which he defines as houses worth less than Rs 2 crore in Delhi and Mumbai and less than Rs 1 crore in other cities. HDFC Capital has so far given loans for the purchase of 3 lakh houses. Affordable homes are small but non-premium. According to the report, 1.9 lakh acres of land will be required for construction of 31.2 million housing units.
High demand among people with annual income up to 9 lakhs According to the report, the demand for 31.2 million housing units in the country is estimated by the year 2030. This includes the current shortage of 10.1 million units. This demand is mainly high in the segment with annual income up to Rs.9 lakh. Which are classified as economically weaker section (annual income up to Rs.3 lakh), low income section (3-6 lakh) and middle income section (6-9 lakh).
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