Affordable Housing Shortfall In India To Reach 31.2 Million Units By 2030: Report

The report, ‘Affordable Housing in India, ’ highlights that the country already has a shortfall of 10.1 million affordable housing units, underscoring a strong need that continues to grow

The report also pointed out this segment's vast opportunities for financial institutions

Source : PTI

India is projected to face a significant affordable housing shortage, with an estimated 31.2 million units lacking by 2030, creating a potential market worth Rs 67 trillion, according to a joint report by the Confederation of Indian Industry (CII) and real estate consultancy Knight Frank India.

The report, titled ‘Affordable Housing in India’, was unveiled at a conference by CII and Knight Frank on Wednesday. It highlighted that the country already has a shortfall of 10.1 million affordable housing units, underscoring a strong need that continues to grow.

During the event, Ghulam Zia, Senior Executive Director of Research, Advisory, Infrastructure and Valuation at Knight Frank India, stressed the scale of this shortage and the immense business potential it offers to real estate developers. He stated, “The cumulative Affordable housing shortage in India is projected to reach 31.2 million by 2030, with the market size estimated at Rs 67 trillion.”

The report also pointed out this segment's vast opportunities for financial institutions. "Based on the assumption of a 77 per cent loan dependency and Loan-to-Value ratios applied at various loan thresholds, the potential financing opportunity for banks and Housing Finance Companies in the affordable housing segment is estimated to be Rs 45 trillion," the report said.

This represents a threefold increase from the current loan volume in this segment, signalling a substantial growth opportunity for lenders.

Meanwhile, according to a recent Reuters poll, home prices in India are expected to rise steadily over the next few years, according to a recent poll. The price increase is primarily driven by demand from wealthier individuals, as the rising cost of living has made property ownership unaffordable for many.

The poll predicts that home prices in major cities across the country will increase by 7 per cent in the coming year, followed by a 6.5 per cent rise in 2025. Looking further ahead, the survey projects a 7.5 per cent jump in housing prices in 2026.