Scrolldown Scrolldown
Real Estate
Indian Real Estate

Opportunity in Middle Income Residential Real Estate

  • Increase in number of households in 'Strivers & Seekers' category from 7.3 mn in 2005 to 87 mn in 2025
  • India's housing stock is currently at 19 mn units as compared to 92 mn units in the U.S. for a similar size urban population
  • Average home price is 4.5x annual salary today vs. 22x ten years ago
  • Affordable housing supply is 5 mn homes for a demand of 30 mn homes; supply is forecast to increase to 12 mn homes and demand to 50 mn homes by 2030
  • Mortgage penetration is currently at 6% of GDP and has been increasing at a 20% CAGR in recent years

Source: McKinsey Global Institute Research
* Assuming an average WPI Inflation of 6.2% in period 2004-05 to 2010-11; Source: Ministry of Commerce & Industry, Govt. of India

India's Income Pyramid - 2005 to 2025
Middle IncomeMiddle Income
Up Arrow