Residential Market of Bangalore is expected to remain in the active position in future with almost 243,000 units to be supplied in the next five years, till 2018. South India is being a vital IT-ITes hub, induce workforce from India as well as abroad, further escalating the housing needs
The supply of projections indicates that nearly 56% of new units may cater to MIG, 29% to LIG and the left over 15% to the HIG. The mounting demand for residential sector (until 2018) is projected to be 438,6000 units with 44% in the MIG and 31% in the LIG. Taking all high requirements, demand is undoubtedly, remain unmet in all segments with the demand-supply gap around 196,000 units, according to the study by global Real Estate Consultancy Cushman & Wakefield (C&W).
For MIG group Bangalore has remained in focus, primarily, due to the large-scale mid-level IT workforce in the city. Also, because the city holds wide global corporations with headquarters, the need of HIG housing is possibly climp-up.
According to the study, increase in demand for urban housing is expected to be 13 million units by the end of 2018 year. Of the total additional demand , top eight cities are likely to represent 23 per cent or 2.95 mn units, addition to this, MIG is more likely to accelerate in volume of demand if 1.08 mn, followed by Lower Income group which lead demand by nearly 1.05 mn unit and HIG with 0.52 mn units.
The supply of existing, under construction and planned residential units is approx 1.31 mn and expected to be delivered in top eight cities by the end of 2018. Under-construction units have already sold. Above all, Delhi-NCR is likely to have the highest supply of roughly 516.000 units delivered in the nest five years, whereas, Bangaluru around 243,000 units followed by Mumbai with 203,000 units.
By 2018, the expected supply in LIG by 21 per cent of the total supply across top eight cities and MIG accounts for 59 per cent. And moreover, cities like Bangaluru, Mumbai and Ahmedabad lead the rank against who shortfall of housing units careering MIG.
