MUMBAI: The middle-income group (MIG) is expected to drive the demand for housing in the tier-II and tier-III cities over the next five years accounting for almost 39 per cent of the total cumulative incremental demand. Property consultant Cushman & Wakefield, survey that the cumulative incremental residential demand in such cities is estimated to be around 9.44 lakh units.
The estimate is based on a field survey undertaken in leading eleven tier-II and tier-III cities. While MIG would account for 39 per cent of the cumulative incremental demand, the Low Income Group (LIG) and High Income Group (HIG) would account for 37 per cent and 24 per cent respectively of the incremental demand.
The western region of the country is likely to account for the highest demand, followed by the southern and northern regions respectively. Surat has emerged as the front-runner and is likely to account for one-fourth of the total cumulative incremental dem-and, followed by Kochi and Visakhapatnam.
While Surat’s growth would be led primarily by higher job opportunities in the industrial sector, the two southern cities of Kochi and Vishakapatnam would see a spurt in demand for housing led by the services sector that includes IT-BPM services. These three cities account for 47 per cent of total demand expected till 2020. Other cities that could see higher demand include Lucknow, Jaipur, Nagpur, Indore, Coimbatore, Vadodra, Chandigarh and Bhubaneshwar. “There is a need for developing alternate urban economic centres in India as the tier I cities may soon be exhausted in terms of infrastructure to be able to support the expected or desired growth of India.
