Credai Officials Detail Drivers of India's Residential Real Estate Growth
In a recent statement, Ramachandra CH, joint secretary of the Confederation of Real Estate Developers' Associations of India (Credai) national chapter, emphasized that demand in the housing sector remains robust. He attributed this strength to the flow of money from industrial and infrastructure growth, which ultimately channels into residential real estate. However, he cautioned that project timelines, typically spanning 4 to 6 years, can still face disruptions due to various factors.
Challenges and Regional Insights in Project Execution
Ramachandra highlighted specific obstacles that may affect development schedules, including worker shortages, fluctuating market conditions, and delays in utilities and approvals. He noted that these issues are particularly relevant in regions like the eight-state Northeast area, where growth is nonetheless being propelled by improved connectivity. Examples of such infrastructure projects include the Outer Ring Road (ORR) in Bengaluru, Hyderabad, and Mumbai, which are enhancing accessibility and driving demand.
Growth Fueled by Tier-2 and Tier-3 Urban Centers
According to Ramachandra, rising demand from Tier-2 and Tier-3 cities is a significant factor in the sector's expansion. Bhaskar T Nagendrappa, president of the Credai-Karnataka chapter, echoed this sentiment, pointing to Bengaluru's tech ecosystem, favorable weather, and strong connectivity as key drivers of its strong market position. He added that while Bengaluru remains the largest apartment market in the state, Tier-2 cities such as Mangaluru, Mysuru, Kalaburagi, and Belagavi are witnessing increasing acceptance of apartment living, even as plotted developments continue to dominate in other areas.
Post-Pandemic Shifts and Broader National Trends
Nagendrappa also observed a post-Covid trend where buyers are opting for slightly larger homes, reflecting changing preferences. Builder associations across India have identified urbanization, employment generation, and rising purchasing capacity as primary drivers of residential real estate growth. Ramachandra provided specific examples, noting strong demand in Maharashtra beyond major hubs like Mumbai, Thane, and Pune, and similar trends in Karnataka's cities of Mysuru and Mangaluru. He stressed the importance of boosting employment in these smaller urban centers to sustain the growing acceptance of apartment living.
