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Rising Demand for New Homes in India, 100 Million new homes may be built this Decade


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According to a top official at Macrotech Developers Ltd., one of India’s largest developers, Indian home builders may need to construct up to 100 million new dwelling units in this decade. This surge in construction is driven by increasing household incomes and the resulting demand for new residences in the world’s fastest-growing major economy.

Factors Driving Demand

Over the next 10 years, around 70 million Indian households will become eligible for home ownership. Additionally, there is a significant number of people looking to upgrade their apartments. These factors combined are expected to create a demand for as many as 100 million new houses, as stated by Abhishek Lodha, the CEO of Macrotech Developers Ltd. The company is known for its flagship projects, including the Trump Tower in Mumbai.

Government Initiatives and Economic Impact

Indian Prime Minister Narendra Modi, who recently began his third term, has expressed a commitment to driving growth, particularly in the housing and infrastructure sectors. Real estate consulting firm Knight Frank predicts that the demand for homes resulting from rising income levels could contribute to $906 billion of economic output over the next ten years.

Recent Trends and Challenges

The Indian property market has experienced increased activity since the pandemic, with 2023 marking the best year for home sales in at least 15 years. Macrotech Developers, operating under the brand name Lodha, reported its highest-ever quarterly sales in the three months ending in March. However, despite the industry’s growth, constructing 100 million homes over the next decade remains a significant challenge. Even with a fast pace of growth in the construction sector, meeting this demand will be a considerable undertaking.

Expansion and Market Performance

Macrotech Developers, renowned for its gated communities in upscale neighborhoods, expanded its operations in Bengaluru, a tech hub, and Pune, a city located 150 kilometers from Mumbai, India’s financial capital. The company is currently the second-largest listed real estate developer by market value, following DLF Ltd. Its shares have experienced a rise of over 43% so far this year, outpacing the 40% climb in the NSE Nifty Realty Index.

Long-Term Outlook

Abhishek Lodha emphasizes that the rising demand for homes in India represents a long-term cycle that will span over 15 years. He believes that India is still at an early stage in this cycle, with significant potential for growth. Lodha suggests that it will take time before real estate in India reaches its rightful share in the country’s economic mix.

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