India’s Urban Boom: The Need for 100 New Cities and Innovative Solutions
At the 17th National Convention of the National Real Estate Development Council (NAREDCO), G Hari Babu, the President, highlighted the urgent need for 100 new cities and innovative technologies like 3D printing to address India's urban challenges.
Urban DevelopmentReal EstateAffordable HousingRera3d PrintingReal EstateAug 30, 2025
Post-RERA Era Has Changed the Game
When asked about long-pertinent issues faced by homebuyers—such as project delays, substandard construction, and lack of transparency—G Hari Babu pointed to a significant transformation in the industry post-implementation of the Real Estate (Regulation and Development) Act, 2016 (RERA). “We must evaluate the sector in two phases: before RERA and after RERA,” he said. “Most of the high-profile litigations that we hear about, including those in the Supreme Court, stem from the pre-RERA era. Today, such cases are few and far between, and can be counted on your fingers.” He cited the example of the Jaypee Group’s stalled housing project in Noida, where over 16,000 flats were left incomplete. According to Babu, the Suraksha Group has since taken over the project, and work is now progressing swiftly. Flats were at various stages of completion, but today, I can confidently say all 16,000 units will be delivered in the next three years, he assured. About 2.92 lakh non-performing units across India have been revived under group asset restructuring. I believe 85% of these legacy problems will be resolved within the next five years.
Affordable Housing Remains a Challenge
Addressing the pressing issue of affordable housing, G Hari Babu stressed the growing mismatch between income levels and housing prices in urban India. “People earning ₹50,000 a month simply cannot afford to buy a home in today’s market,” he said. “Even those earning ₹75,000 face financial strain due to rising education and healthcare costs. Renting itself takes up ₹15,000–20,000 of their income. Unless both spouses earn decent salaries, homeownership remains a distant dream.” He noted that post-COVID, land prices for affordable housing have risen 4x, while construction costs have increased by 50%, and labour costs by 35%.
Despite these headwinds, schemes like the Pradhan Mantri Awas Yojana (PMAY) have provided some relief. But high stamp duties (10–12%) continue to be a burden. We have urged state governments to reduce stamp duties to 2–3% for affordable housing. If these measures are implemented, we could see a 40–50% jump in housing uptake within the next 2–3 years. Hari Babu also proposed unlocking unused land in slum areas to bring down costs further.
India Needs 100 New Cities to Manage Urban Explosion
Speaking about India’s urban future, G Hari Babu emphasized the urgent need to develop new urban centres and smart cities. “Most of our existing cities were developed hundreds of years ago, and their infrastructure is not built for today’s population, let alone future growth,” he explained. “By 2047, our urban population will nearly double from 37 crore to almost 65–70 crore. Cities like Delhi cannot sustainably support such massive growth.” Using a striking analogy, he added, “Think of a healthy person versus one suffering from obesity. Just like obesity strains the human body, overpopulation and unplanned growth strain cities. We need at least 100 new cities in India if we want to manage this urban explosion.”
3D Printing: The Future of Construction
The convention also highlighted emerging technologies that could reshape the construction sector, with a particular focus on 3D printing. “We have actively promoted 3D printing in this year’s convention series,” Hari Babu said. “In the next five years, we expect engineers to start using this technology to construct single and double-storey homes.” He added that 3D printing offers advantages like speed, quality consistency, and better cost control, making it a valuable tool in addressing the housing demand.
Action Plan on the 17th National Convention
On the actionable outcomes of the 17th convention, Hari Babu said the event served more as a guidance platform for stakeholders rather than a place to debate major issues. “We focused on knowledge-sharing—on RERA compliance, new technologies, and ways to serve the common man in better ways. Our job is to guide both the industry and the government, and we trust the government will take necessary steps to ensure the welfare of people,” he said.
Frequently Asked Questions
What is the Real Estate (Regulation and Development) Act, 2016 (RERA)?
RERA is a law that regulates the real estate sector in India to ensure transparency, accountability, and timely completion of projects. It aims to protect homebuyers from malpractices and delays.
Why is affordable housing a significant challenge in India?
Affordable housing is a challenge due to the mismatch between income levels and housing prices, high construction costs, and rising expenses in other areas like education and healthcare.
How can 3D printing help the construction industry?
3D printing offers advantages like speed, quality consistency, and better cost control, making it a valuable tool in addressing the housing demand and improving construction efficiency.
What is the Pradhan Mantri Awas Yojana (PMAY)?
PMAY is a government scheme aimed at providing affordable housing to all by 2022. It offers financial assistance and subsidies to low-income groups to help them own homes.
Why does India need 100 new cities?
India needs 100 new cities to manage the urban population explosion and ensure sustainable development. Existing cities are overburdened and lack the infrastructure to support future growth.
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