India's Affordable Housing Crisis to Triple by 2030: Report
India faces a significant affordable housing shortage, expected to triple by 2030. Despite economic growth, rising home prices are pushing many out of the market.
Affordable HousingReal EstateIndiaEconomic DivideHousing CrisisReal Estate NewsSep 13, 2025
Despite India's economy growing at a robust 7.8% last quarter, the benefits are not reaching all sections of society. This has created an economic divide, especially in the housing sector. While demand for premium homes is on the rise, affordable housing options are lagging behind. A Reuters poll of property experts predicts that average home prices will rise by 6.3% this year and by 7% in 2026.
The rising prices are likely to push entry-level buyers out of the market, even with seemingly beneficial policies. Avneesh Sood, Director at Eros Group, said recent rate cuts may provide some relief on mortgage payments but home prices are increasing by 7-8% nationally. Pankaj Kapoor from Liases Foras noted that post-financialization in real estate has worsened affordability, pushing the qualifying age for property purchase from around 30-40 years to 45 years old.
The affordable housing crisis is not just a matter of economic disparity but also a social issue. As more people are unable to afford homes, the quality of life for many is likely to decline. This could lead to increased urban slums and a strain on public resources. The government has launched several initiatives to address this issue, but the pace of implementation and effectiveness remain a concern.
Several factors contribute to the affordable housing shortage, including a lack of land availability, high construction costs, and bureaucratic delays. Addressing these challenges requires a multi-faceted approach, including land reforms, financial incentives for developers, and streamlined regulatory processes. The private sector also plays a crucial role in providing affordable housing solutions, but they need government support and clear policies to operate effectively.
In conclusion, the affordable housing crisis in India is a complex issue that requires immediate attention. While the government and private sector have taken some steps, more needs to be done to ensure that every Indian has access to a safe and affordable home.
Frequently Asked Questions
What is the current deficit of affordable homes in India?
India currently has a deficit of around 10 million affordable homes.
How much is the average home price expected to rise this year?
The average home price is expected to rise by 6.3% this year.
What are the main factors contributing to the affordable housing crisis?
The main factors contributing to the affordable housing crisis include a lack of land availability, high construction costs, and bureaucratic delays.
How has the economic divide affected the housing sector?
The economic divide has created a situation where demand for premium homes is rising, while affordable housing options are lagging behind.
What steps are being taken to address the affordable housing shortage?
The government has launched several initiatives, and the private sector is also involved in providing affordable housing solutions. However, more needs to be done, including land reforms and streamlined regulatory processes.
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