The existing shortage combined with upcoming demand for the affordable housing segment in India will need 30.7 million units by 2030.
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Bengaluru: The existing shortage combined with upcoming demand for the affordable housing segment in India will need 30.7 million units by 2030. The opportunity to finance 30.7 million units is calculated to be Rs 44.6 lakh crore, according to a report by Knight Frank and CII released on Wednesday.
Led by factors such as urbanisation and employment opportunities, 22.2 million units of housing will be required in urban centres in India. 95.2 per cent of this demand will be concentrated in the affordable housing segment. There is already an existing shortage of 10.1 million units.
The cumulative affordable housing market size is estimated at Rs 67 lakh crore. The current portfolio of the affordable housing loan market in India is estimated to be Rs 13 lakh crore.
Between 2011 and September 2024, the affordable housing segment attracted capital inflows of $1.6 billion. This represents 3.6 per cent of the overall real estate sector inflows.
A disconnect persists between policymakers' definition of affordable housing and the realities of the current residential market. The average cost of units in the affordable housing segment has risen considerably compared to pre-pandemic levels, affecting affordability for homebuyers.
In the last few years, the private developers’ participation in affordable housing projects have moderated.