The paradox of Indian real estate

India has a huge demand for houses. Industry experts peg this number at 50 million houses in next 10 years – urbanization as a trend has just touched the tip of the iceberg. At a fundamental level, the underlying drivers of demand are strong – key drivers being:

a) High population growth, unlike some European countries that experience negative population growth and have a difficult time filling out existing inventory

b) Population becoming more affluent i.e. more people getting more money in their hands to invest

c) Cities like NCR, Mumbai, Bengaluru see other factors that drive further demand; high immigrant population – with several 100,000s moving in and out of these cities every year creates churn and opportunity; also these cities see demand from neighboring states e.g. the people who can afford it, in let’s say UP, Himanchal, want a secondary residence in NCR/Delhi

Read Full Story: The paradox of Indian real estate