Affordable Housing Demand Heading for Superlative Growth With inflation, rupee depreciation and high interest rates casting shadow on the industrial growth for the last two years, one segment which is less affected in India and still in ‘green’, though moderately, is the construction industry. Within the construction sector, which is witnessing slow growth, a new trend is emerging to keep the industry floating against the tides of global economic crisis. The mantra of “affordable housing” is catching up everywhere. From small to big players are trying to tap this market to their fullest potential. According to RNCOS, a leading market research and information analysis company with a global presence has come out with a report which says that the demand for affordable housing is expected to grow exponentially in the coming years in India. With constant support from the government and financial institutions, such as decrease in mortgage rates and increased concentration on reasonable housing construction, the affordable housing demand in India is expected to grow at a CAGR of around 13% during 2011-2013. India housing industry has emerged as the most vibrant and dynamic section of the real-estate industry. With the entry of numerous real-estate developers, availability of financial options, and increasing demand for residential property, housing industry has witnessed stupendous growth in the past. Despite the global economic gloom as a result of the sub-prime mortgage debacle and ensuing credit crunch, India’s housing sector remains on course for yet another year of double-digit growth. This growth is attributed to the large population base, rising income level, and rapid urbanization factors prevailing in India. Moreover, the housing construction industry is expected to overtake other industrial sectors in terms of contribution to the GDP growth in the next few years, says the report, ‘Indian Housing Sector Analysis.’ Presently, affordable housing is basically targeting at economically weaker class and low-income groups and constitutes majority of the Indian housing industry, both in terms of value and volume. Medium housing segment is also witnessing tremendous growth, especially in Tier-1 and Tier-2 cities. Besides, luxury housing is also expected to witness significant growth in the coming years as this market segment is comparatively very small and possesses huge potential for further developments. As far as super luxury housing segment is concerned, latest industry trends and developments are skewed towards the segment. MNCs are hiring expat employees who are provided with the luxury housing benefits. Additionally, high net worth NRIs are also propelling demand for luxury housing in the country. Both these factors are expected to sustain the growth of luxury housing segment in the long run. The report also entails detailed analysis of the housing sectors in India. It presents thorough insight into each of the housing segments including affordable housing, medium housing, and luxury housing. Most importantly, the report also provides future outlook taking into consideration the effect of global economic crisis on the housing sector of the country. Base drivers, opportunities, and challenges faced by the housing sector are also discussed. The report sheds light on the emerging industry trends and discusses the market structure along with current and past market performance of the Indian housing industry. It has identified key players in the market and included their detail business description along with their recent activities.
Posted on: Sun, 23 Jun 2013 08:30:35 +0000
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