India needs 9.4 million affordable homes. This shortage will grow to 30 million by 2030. Demand for housing is increasing. New home construction is slowing down. Private investment is also low. This makes the problem worse. A report suggests bold reforms are needed. Government and developers must work together. Financial groups and communities also play a part.
The report suggests using vacant government land. Public-private projects can build homes there. It also recommends changing building rules. This could lower costs and increase supply. Giving developers cheaper loans for building is another idea. Knight Frank released this report on August 29.
India’s affordable housing market is struggling. In early 2025, the number of homes built is much lower. It’s 0.36 compared to 1.05 in 2019. This is for the eight biggest cities. Knight Frank India shared these findings. The event was the 17th NAREDCO National Convention.
Mumbai, Delhi NCR, and Bengaluru are included. Pune, Hyderabad, Chennai, Kolkata, and Ahmedabad too. The report is called Affordable Housing: Tackling Urban Housing Deficit Through Supply-Side Reforms. It states that demand for affordable homes is high. New housing projects have greatly reduced. This creates a large gap. Buyers need more homes than builders are providing. India has a 9.4 million home deficit now. This number could reach 30 million by 2030. Most demand comes from low-income families.
The share of homes under ₹50 lakh dropped. It was 52.4% in 2018. Now it is only 17% in early 2025. This shows less affordable housing is being built. Slowdowns in building are due to problems. These problems stop private companies from investing.
Government programs help demand. Examples include PMAY and ARHC. Tax benefits also support buyers. Builders face high land costs. They also struggle to get building loans. Poor infrastructure in outer areas is another issue.
Affordable housing is important socially. It is also vital for the economy. Demand policies are good. The main issue is building more homes. More land must be made available. Financing needs to improve. Building processes must be faster.