With the current under construction and planned supply geared towards high-end, supply gap in mid-segment residential units in Ahmedabad is now over 31 per cent.
However, despite efforts to focus on the segment, high-end supply gap is also hovering at around 22 per cent, says the latest report released by global real estate consultancy Cushman & Wakefield (C&W).
The annual report 'Evolving Paradigm - Future Of Indian Real Estate', prepared in association with Global Real Estate Institute (GRI), estimates that the total new demand that could be generated for residential dwellings in the period 2012-16 will be 11.8 million units across India, of which the top 8 cities will be constituting 18 per cent or 2.1 million units across categories.
"The residential housing demand can be seen as an indication of the current and future economic activities in these cities. Majority of the growth in demand (in the top 8 cities) is expected to come from the services sector, in cities of Bengaluru, Hyderabad, Mumbai and NCR, Pune and Chennai will see demand on account of both services as well as manufacturing sectors. Ahmedabad's demand, in addition to migrant population, is driven by indigenous growth in population and also many re-settlers who intend to return to the city after having spent a fair deal of time in other locations across the globe," said Sanjay Dutt, Executive Managing Director, India for C&W.
However, Ahmedabad will see a total fresh demand of 173,394 units in the next five years, of which nearly 80 per cent will be in the mid-ranged category. The high-end will make up for the rest 20 per cent. There is a growth in demand from both current inhabitants of the city and from the migrant population, which is attracted to the established economic base in the city on account of growth in industrial and manufacturing sector in the periphery of Ahmedabad.
A significant part of the demand in Ahmedabad, especially in the high-end segment is being created by migrants largely from other parts of the state.
