Mumbai will see the highest demand for urban housing after Delhi-NCR in the next five years, say a report by Cushman & Wakefield and GRI titled Revitalising Indian Real Estate: A new era of growth & investment. The total demand for urban housing is estimated at 4.2 million units during 2016-20 across top eight cities such as Delhi-NCR, Mumbai, Bengaluru, Chennai, Kolkata, Pune, Hyderabad, and Ahmedabad, says the report.

The urban housing demand is the highest in Delhi-NCR, forming nearly 24-26 per cent of the demand in all three segments. Mumbai and Bengaluru follow, and are expected to generate demand of about 711,000 and 686,000 units, respectively, over the next five years.

While a majority of the demand within Mumbai is from the middle income group, the lower income group accounts for the most in Bengaluru. In most of the cities except Mumbai, developers are focusing on the middle income group with 60-70 per cent of the upcoming supply concentrated in this segment.

In Mumbai, majority of the supply is likely to cater to the high income group, with supply of catered to the lower income group likely to be among the lowest in Mumbai, says the report.