Premium residential supply at 367,000 by 2011
According to a report by Knight Frank India Pvt Ltd, the Supply of premium residential housing would reach 367,000 units by 2011. The research study on the country’s residential market – “Residential Market Review Q3 2009” indicates that out of the total housing unit supply which is 367,000 units across 7 major cities, the National Capital Region (NCR) will be the largest contributor with 92,202 housing units equating to 160.16 million sq.ft of fresh supply of residential space.
NCR will be followed by Mumbai with 72,906 units equating to approximately 80.61 million sq.ft by the end of 2011. With the resurgence witnessed in the global economy, particularly the real estate sector, Knight Frank further estimates that 75% of the present and future residential supply will focus, to a great extent on the 2 and 3-BHK housing units being built.
The report closely examines potential residential supply across several key city regions by the end of 2011. “Our research has shown that during the slump there has been a price correction across several cities from 10% to as much as 40%. Since March 09, residential property prices have again increased by 10-30%, but this phenomenon is limited to cities like Mumbai and Bengaluru. It is not a country wide phenomenon.
Many developers are targeting the mid-income group in key metros with housing units that are priced to suit their needs. The year 2009 witnessed several withdrawals with regard to housing demand and corresponding supply. However, Knight Frank’s extensive research reveals that as the real estate sector’s growth continues to improve, the country would witness a supply of 138,000 residential units in 2010, which would be 57% more than the supply seen in 2009,” said Gulam Zia, National Director – Research & Advisory Services, Knight Frank India.
Commenting on the residential research report, Anand Narayanan, National Director – Residential Agency, Knight Frank India said, “Our studies have revealed several interesting trends with regard to the residential sector. One of the most important trends emerging is the increased focus of developers on 2&3-BHK housing units from the 4&5-BHK and penthouses witnessed few years back.”