Hyderabad to face shortage of flats over five years

This demand, the report claims, will be driven largely by the Middle Income Group (MIG) and LIG category, which will contribute nearly 80 per cent of the demand or 2.7 million units in the top eight cities.

The report claims Hyderabad faces the maximum gap in percentage terms at 83 per cent as the cumulative supply over the next five years is 65,000 units compared to the demand of 3.91 lakh. Gujarat’s metro city Ahmedabad also ties with Hyderabad in terms of demand-supply gap.

The real estate developers in the city, however, are confident to meeting the demand. “Developers had brunt their fingers in the past. So we are starting projects in a phased manner as and when we witness the demand,” said C. Shekhar Reddy, the former national president of real estate body Credai.

Though he said the demand and supply situation in the Hyderabad housing market is comfortable, Mr Reddy predicted a gradual increase in demand as the property prices in the city are less half of those in Bengaluru and Chennai.

In absolute terms, the report predicts that nearly one-fourth of the overall demand for housing in the country will come from Delhi-NCR. It is followed by Bengaluru, Chennai, Hyderabad, Mumbai, Ahmedabad, Pune, Kolkata.

Despite the rosy picture painted by the report for the next five years, Sanjay Dutt, managing director, India, Cushman & Wakef-ield, “the ground reality today is that there is a perceptible supply overhang — residential stock not translating into sales.”

In addition, the report also says that the private equity investments in real estate sector reached $2.8 billion or Rs 18,300 crore during the first nine months (January - September) of CY 2015, the highest since 2008. This is an increase of 84 per cent over the corresponding period last year.