India is already witnessing rapid urbanization and will be amongst the top 3 global economic giants over the next couple of decades. There is huge influx of citizens into major metro cities and surrounding zones in recent years. Tanuj Shori, the CEO and Co-Founder at Square Yards, has highlighted reports which state how the count of people residing in urban zones will increase to 600 million in the year 2030 from 462 million in the year 2018. 5 million homes will have to be built every year which is a far cry from 0.5 million homes being developed annually.
Will Indian real estate cater to increased urbanization suitably? This is where the market can touch $1 trillion by the year 2030 due to immense demand according to Shori. Influx into urban areas will naturally boost real estate sales and this is being driven by pro-active government measures as well. Urban Indian housing necessitates 91.6 million housing units by the year 2021 which could go up to a whopping 213 million units by the year 2050.
Most of the increase will be across India’s top 10 cities. Shori feels that affordable housing is drawing huge demand which is even surpassing supply levels in some areas. RERA has boosted buyer confidence while leading developers are emphasizing on lower floor space and more affordable units.
Shori feels that millennials will accelerate a lot of demand for affordable housing which is already indicated through increasing sales figures. Also, housing reach should increase since he states that many people register for buying homes with Square Yards and yet ultimately have to abandon their search due to lack of options from a geographical perspective. Indian realty is finding its feet once again but most key cities are not equipped to handle the growing urbanization wave of the future. Civic infrastructure has to be improved for the urban population as well. 7-8% of the GDP has to be allocated for this purpose to combat congestion, parking woes, overcrowding and lack of open spaces according to him.
Square Yards is a technology-enabled, global real estate aggregator and India’s largest player for primary residential real estate. It’s subsidiary Square Capital is one of the largest marketplace for secured mortgages in India. Square Yards platform offers an integrated consumer experience & covers the full real-estate journey from search, discovery to research, transactions, home loans and post-sales service – fully integrating buyers to an extensive network of 500+ partner real estate developers, and 90+ banks & NBFCs. Square Yards is led by accomplished professionals, ex-bankers, and Ivy school alumni and is backed by the competence of more than 2500 employees in 30 cities and ten countries.