Demand for affordable housing is set to flourish, in addition to the need for office space from India’s cities, according to a report titled India 2030 — Assessing the Future, from the Confederation of Real Estate Developers Association of India (CREDAI) in affiliation with international property adviser CBRE.
The report foresees a potential for rapid urban growth, albeit with a few critical challenges. “Lines between rural and urban regions are blurring. More cities are bringing individuals, in bigger numbers than previously, which is driving a number of their expansion,” says Samson Arthur, division manager for Hyderabad at home consultancy Knight Frank India.
As this migration compels the development of infrastructure, this produces a conducive climate for real-estate improvements. Also, Arthur states.
The increasing shift into the cities may also find a corresponding growth in demand for cheap housing.
This projection might even defy the present stagnation within this section brought on by the non-banking financial company (NBFC) catastrophe, adds Pankaj Kapoor, managing director at realty consultancy Liases Foras.
“Today there are no shareholders to get affordable housing, but the section will still be a dominant one and perform well in the bigger towns in the not too distant future,” Kapoor says.
At the face of a potential economic downturn, office area will rely upon a recovery in the total market, Kapoor says.
There are several other serious challenges also. The report claims that by 2030, India’s urban population will lead up to 75 percent of GDP, but that projection could just become a reality if the strain on the standard and physical infrastructure methods is eased.
“Many Indian towns lag on crucial quality of life parameters and therefore are plagued by challenges like poverty, and lack of affordable housing, traffic congestion, overcrowding, ecological degradation, and air pollution,” the report points out.
To get more liveable cities, it goes on to state, “India should spend 7-8percent of its GDP on infrastructure yearly to boost private and public investment in infrastructure.”
Some answers to the infrastructure issues will need to be performed on a much broader scale,” says Rohit Poddar, managing director at Poddar Housing and Development and joint secretary of NAREDCO Maharashtra
“The problem of parking spaces in metro cities such as Mumbai has been addressed by alternatives like vertical heaps. Considering that the increasing demand for conveniences and concern over safety, developers are making up the township-led jobs, which can be self-sustained with the basic amenities. Townships and gated communities in the peripheral areas of the metros have been regarded as possible avenues to satiate the requirement for a house with social conveniences and safety structures at a reasonable price,” he adds.