India is predicted to face severe housing shortage. According to the global real estate consultant firm Knight Frank, housing shortage will be one of the main problems India will have to handle in the near future.
By the year 2031 the population, residing in the top Indian cities, will be over 600 million. The government and the real estate builders will have to really find some solutions to solve the housing shortage.
By the same yea, India will have to produce a good number of housing units in the country. Only then there is a chance for the government to meet the surging demand for housing units.
It is true that the government and the builders are striving hard to provide sufficient number of houses to the people in the country. Jawaharlal Nehru National Urban Renewal Mission (JNNURM) is an example for the efforts of the government.
Under the JNNURM the government plans to develop around 1.6 million homes in the coming seven years. However the number is highly insufficient to meet the housing demand.
According to Knight Frank, funding is one of the main drawbacks in the construction sector. India will be able to meet the housing shortage only if it solves this issue.
The global property consultant’s recently published research report “Economy and Realty @ Glance” suggests Real Estate Investment Trust (REIT) model funding for solving the housing shortage. In fact, the main focus of the report itself is housing shortage which India faces right now.
In the global consultant’s opinion REIT will effectively solve out the issues related to funding real estate projects. Housing shortage, mainly due to the population explosion in the main cities, will have impact on the social and economic conditions.
In 2012, it was estimated that around 94.98 million of population are living in slums in Indian cities. The number alone shows and points out the grave situation of housing shortage which will reach its nadir level or the worst level by 2031.
