Indian housing and office space to increase
Construction in India is expected to rocket over the next four years as demand for housing units in the country is set to rise to 12 million by 2016 according to a report by global property consultant Cushman and Wakefield.
Much of this construction boost will be seen in the country’s top eight cities of Mumbai, Bangalore, Pune, Hyderabad, NCR, Chennai, Kolkata and Ahmedabad, where 2.1 million units in total are needed. Bangalore in the south of the country is expected to be the most active of all India’s housing markets due to the large amount of industry and services based there. The report estimates that 338,546 units will be needed in the city to meet demand.
The calculations for the Cushman and Wakefield report are based on past population trends, household growth and the income classification of households.
Demand for mid-segment housing will be the highest, accounting for 59 percent or 1.3 million units across the country, followed by high-end housing with 451,000 units.
Meanwhile demand for commercial office space is also expected to increase in India’s major cities with 180 million sq ft needed over the next five years. The country’s top three cities of Mumbai, NCR and Bangalore will account for approximately 57 percent of this total demand.
“Based on the expected recovery of the economy, partly due to the global recovery, but largely due to the positive signals being sent out by the central government to promote business investments, office space demand is expected to witness a positive growth of 10 percent in 2013 and 20 percent in 2014. This is, however, likely to reduce over the next two years (2015-16) drawing from the forecasts that predict a slowdown in global GDP,” explained Sanjay Dutt, executive managing director, South Asia at Cushman and Wakefield.
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