Asia & Pacific | India
India
With a growing and increasingly
affluent population, housing
demand is set to increase
India’s population is nearly tipping the 1,140 million
mark and in contrast to many other countries, it is set to
continue expanding, reaching a staggering 1,568 million
by 2050. Not only extremely large, India’s population is
also very young, with over-65 years olds comprising a
mere five per cent of the total population.
This continued expansion is understandably putting a
strain on the infrastructure and housing sector of India’s
main cities; with Mumbai, Delhi, Chennai, Kolkatta,
Bangalore and Hyderabad all boasting a populace in
excess of four million. This migration towards the cities
has seen India’s urban habitants expanding to 30 per
cent of the total population.
Furthermore, housing demand is increasing with the
rise in household numbers, which is caused not only by
population growth, but also by diminishing household
sizes, often owing to the shift away from multi-
generational households.
Profile of demand Wealth creation
The demand for
residential property
Growing disposable income and the emerging middle Robust economic growth has contributed to significant
in India is driven by
classes are also changing the profile of demand for wealth creation in India. Indeed, India’s HNWI its rapidly growing
residential property. While access to the housing sector population (those with more than US$1 million in net
population
has also been facilitated by the developing mortgage financial assets) has increased by 20 per cent per annum
sector, which has grown 57 per cent per annum on on average in the last five years, fuelling demand for
average in the last three years and was worth almost high-end residential.
US$29 billion in 2005. Between 2006 and 2007, the number of billionaires
In recent years there has been a rise in foreign from India has also grown by 47 per cent (representing
investment into India’s ‘townships’, which are master US$335 billion in wealth). 53 per cent of India’s
planned community developments often located billionaires are ‘self-made’ billionaires. The sources of
close to existing towns. These comprise not only new their wealth are highly diverse, software and technology
residential befitting modern tastes and requirement, followed by real estate and manufacturing are the single
but also include retail, office, leisure and green space. largest sources, reflecting the growth in these industries
in India.
Areas to watch in 2009
Rising wealth is also supporting growing second
home ownership in India. Destinations such as Shimla,
The Mumbai Pune corridor
Kerala, Goa, Pune, Alibagh, Khandala and Lonavla are
Savills is working closely with developers on new
all popular among second home buyers. ‘Hill stations’
township projects in the Mumbai Pune corridor,
one of the fastest growing areas of the Indian
such as Dehradun, Mussoorie, Ooty and Shimla, which
engineering and IT sectors.
can afford more comfortable climates during peak
summer temperatures, are also highly sought-after. n
Renewable energy
Savills is involved in renewable energy projects,
providing rural employment and providing alternative
fuels and the lowering of sulphur emissions.
“Rising wealth is also
Contact:
Neil Macleod
supporting growing second
+44 (0) 20 7016 3740
nmacleod@savills.com
home ownership in India”
28 savills global residential review
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