Affordable homes mkt to touch Rs300K cr by 2011
A report on ‘Affordable Housing in India’ released by Knight Frank, the global property consultancy, has pegged the market size for affordable housing in the country to be over Rs3,00,000 crore by 2011. The mammoth scope of this sector is expected to arise from a housing requirement of over 2 million units by 2011.
While the Rs3-10 lakh income group would drive this demand, the research findings further indicates that the largest contributor to this market size is expected to be the group earning Rs3-6 lakh income annually.
Buyers in the Rs8-10 lakh income group quoted a more conservative budget than those in the Rs3-6 lakh group which reflects the extremes on which higher income group consumers operate during boom and recession periods. The study also reveals that the household purchase timelines of these potential buyers are over 32% between 6-12months and about 7% within the next 6 months.
The report further reveals that good connectivity to work places is the most important factor influencing the buyer’s decision in selecting the location of their residence. This is followed by good infrastructure and good potential for future development. And while choosing a project, uninterrupted water supply, power backup and high level security systems are the basic amenities preferred over gymnasium, swimming pool, modular kitchen, interior fixtures etc.
Commenting on the findings, Gulam M Zia, National Director- Research & Advisory Services, Knight Frank India said, “The report defines affordable housing based on prospective buyer’s preferences, actual affordability and supply perspective. The in-depth city-wise analysis of the segment would help the developers to understand the consumer focus and the underlying potential of the category and cater accordingly.”
The research report took into consideration the expectations and requirements of 1400 middle class households (with a income Rs. 3-10lakh p.a) across 7 cities – Mumbai, National Capital Region (NCR), Chennai, Bengaluru, Hyderabad, Kolkata and Pune.