Aspiration for wealth is Differentiates human from animal

Aspiration for wealth Differentiates human from animal
Aspiration for sustainability differentiates an agrarian folk from a pirate or nomad

Sunday, June 9, 2013

Future of building industry in India?

Future of building industry in India?

As per census of India 2001 we had 19 plus crore houses against a population of approx 104 crore.

In 2011 the strength of houses gone to 33 crore against 17 crore increment in population.
What does it denotes is in 10 years period we built almost 14 crore new house which is about 70 % of the home constructed in last 2000 years. Out of them 24672968 was vacant at the time of survey. Another 56 crore are from drawing board to construction to completion stage .
Builders who completed and sold flats in last decade further planned and expanded contracts of development; on an average; more than four times of their sold flats. So the figure of currently under construction or finished in last two years 11 months and 12 days are 56 crore. which makes total count of housing stock in India is 56+33= 89 crore house for total population of 125.5 crore. This means one home for every 1.41 persons.
Now calculate if the supply so much; how the price of the property will grow in next 62 years when we reach 170 crore the peak population in entire century with one home per 1.91 person; if we stop construction today?
How any family in India can enjoy life?
 In 2001 three states had occupancy rates less than 90%; In 2011 six states have this scenario in our country.

Accordingly we have 51,862,242 bike  and 11,473,587 Car/ Jeep/ Van in India
In our country total car n bike are less than 7 crore with multiple vehicles in a single family.

Due to the less occupancy rate the rental value is almost 20% of emi for 20 years
Today the emi to rent ratio is more than 5 which means if anyone live in rented home he can have a leverage of 5 times on monthly basis. take an example If you are living in Navi Mumbai in one bhk with a rent of 7500; so in next 100 months you are going to pay Rs 7500*100= Rs 7.5lac in other words if you keep only Rs 10 lacs in bank; you can pay the rent for your whole life and if you are going to buy the same it will cost you more than Rs 50 lac plus maintenance extra for life time and you will pay to bank 1000*50*20*12 Rs 1.2 cr for that house.