India’s leading real estate players, DLF and Unitech are considering building homes that could sell for Rs.10 lakh to fulfill the demand of mass housing created as a result of economic growth.
India will need 10 million new housing units a year by 2030, according to ADB estimates from the Asian Development Bank. A Mckinsey report mentions that India will be world’s fifth biggest consumer market by 2025 and 3 crore Indians will have annual household income more than Rs.90000.
The real estate players are turning to mass market as the luxury market may witness a fall and the supply of residential apartments for the middle and luxury segments may exceed demand.
In the next three years, 200,000 homes will be built in seven biggest cities for the middle and high income groups costing between Rs. 25-50 lakhs. Though mass-housing projects have lower margins, but developers are focusing on cheaper options by choosing locations on the outskirts of cities and doing away with luxury options such as swimming pools and jogging tracks.