Realty sector may grow at 13.6% CAGR till 2016

Consulting firm PwC's Strategy Director Dushyant Singh expects India's real estate sector to expand at a compounded annual growth rate (CAGR) of 13.6 per cent in the five years to 2016. During these five years, projects worth $382 billion may be implemented in the real estate construction sector with the non-premium segment share at $344 billion, reports indicate. Rapid progress of the sector in India calls for induction of new building technologies, not all available locally, leading to cost saving and construction quality improvement benefiting, in the process, all stakeholders, says Andy White, Director of the UK-based DMG. A report by the Federation of Indian Chambers of Commerce and Industry says the inexorable progress in urbanisation will see addition of 900 million people to Indian cities by 2050. In the decade ended 2011, the country saw its urban population rising 32 per cent from 285 million to 377 million. This resulted in rise of urbanisation from 27.8 per cent to 31.2 per cent. According to Credit Suisse, from here to 2050, progress of Indian urbanisation will be at a compounded annual growth rate (CAGR) of 2.1 per cent, double that of China. Migration from rural areas will cause much strain to urban infrastructure, which now is far from ideal, specially housing. The technical urban group of housing ministry estimates housing shortages at 18.78 million households in 2012.