Vertical Development Fuels Elevator Industry Growth Amidst Land Scarcity and Housing Demand
Vertical development has emerged as a key solution to address the escalating demand for housing, particularly considering the scarcity of available land. This trend has, in turn, propelled substantial growth within the elevator industry.
Elevator Industry Sees Significant Boost
The increasing adoption of vertical development strategies has significantly contributed to the growth of the elevator industry. Experts observe an impressive annual growth rate of 40%, with projections indicating even stronger growth in the foreseeable future. This growth is primarily attributed to the housing sector's shift towards taller constructions in recent times.
Land Scarcity Drives Vertical Growth
The limited availability of land, exacerbated by high levels of migration to urban areas, has necessitated the construction of taller buildings. Developers view this vertical approach as essential for meeting the ever-increasing demand for residential properties. This vertical expansion is also anticipated to moderate housing prices, currently heavily influenced by escalating land costs.
Elevators Essential for High-Rise Buildings
As buildings reach greater heights, the demand for elevators becomes increasingly critical. Without reliable vertical transportation, upper floors lose their desirability and market value. This intrinsic link between high-rise development and elevators solidifies the elevator industry's growth potential.
Industry Experts Weigh In
Industry experts have shared their perspectives on this dynamic between the elevator industry and real estate. B.N. Sharma, Managing Director of Indian Elevator Company, based in Noida and operating for two decades, characterized the last ten years as exceptionally positive for the industry. Mr. Sharma noted a constant increase in demand from both commercial and residential sectors, particularly in the Delhi-NCR region, though the company serves locations across India.
"The last decade has been really wonderful for the industry. His firm has been operational in Noida for the last twenty years."
Manoj Tyagi, owner of Divine Right Elevator, echoed this sentiment. Mr. Tyagi observed a shift in demand, with an increasing number of orders originating from the private sector, supplementing the traditional demand from the government sector. The widespread adoption of elevators in buildings with six or more floors suggests a continuous upward trajectory for the elevator industry.
Mr. Sharma adds that "there is demand from both commercial and residential sectors. Being based in Noida, majority of his orders are from Delhi-NCR. However his firm is providing elevator services across India."
"The earlier there was demand mainly from the government sector and now the demand comes from private sector as well."
The increasing reliance on elevators in multi-story buildings, fueled by the real estate boom and the growth of industries, indicates a promising future for the elevator and real estate construction industries. This symbiotic relationship suggests continued growth for both sectors in the years to come.