Home builders in India may need to construct as many as 100 million new residential units this decade. This surge in demand is largely driven by rising household incomes in the world’s fastest-growing major economy.
According to a report by Bloomberg, nearly 70 million Indian households are expected to become eligible for home ownership over the next decade.
This, combined with individuals looking to upgrade their apartments, is expected to generate a demand for up to 100 million new homes as per Abhishek Lodha, CEO of Mumbai-based Macrotech Developers Ltd.
The BJP-led NDA alliance has already started its third consecutive term. While the PM has pledged to push for economic growth, focus on the housing and infrastructure sectors will be a major part of the plan.
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Knight Frank, a real estate consultancy, forecasts that the increased demand for homes due to rising incomes will contribute to around $906 billion to the economy over the next decade.
Since the pandemic, the real estate market in the South Asian nation has surged and 2023 was reportedly the strongest year for home sales in at least 15 years.
Nearly 600,000 primary homes were constructed in India last year. However, even with rapid growth in the construction sector, meeting the demand for 100 million homes over this decade would be challenging, Lodha said.
Lodha believes that the rising demand for homes “is a fifteen-plus year cycle. We are only in year four and there is a long, long way ahead to go before India has real estate at its rightful share in its economic mix.”
