India's Affordable Housing Sector Expected to Hit ₹67 Lakh Crore by 2030, Demand Reaches 31.2 Million Units
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New Delhi, Dec 4 (NationPress) The affordable housing market in India is anticipated to reach ₹67 lakh crore by 2030, with a total demand estimated at 31.2 million units, according to a report released on Wednesday.
The existing deficit and projected demand for the affordable housing sector in India are expected to be 30.7 million units by 2030, with a financing opportunity calculated at ₹44 lakh crore, per the report by Knight Frank India and CII.
Driven by factors such as urbanization and increased employment opportunities, approximately 22.2 million units will be needed in urban areas. Nearly 95.2 percent of this demand, or 21.1 million units, will focus on the affordable housing segment, the report detailed.
A significant portion of 45.8 percent of this demand will come from the economically weaker section (EWS) households, which currently face a shortfall of 10.1 million units.
The current size of the affordable housing loan market in India is estimated at ₹13 lakh crore, with Housing Finance Companies (HFCs) accounting for ₹6.9 lakh crore and Scheduled Commercial Banks (SCBs) holding ₹6.2 lakh crore.
As urbanization accelerates and income levels rise, affordable housing is poised to play a crucial role in transforming the country’s real estate landscape,” stated Shishir Baijal, Chairman and Managing Director of Knight Frank India.
Meeting this demand will necessitate innovative strategies, including public-private partnerships, policy changes, and advancements in construction technologies, positioning affordable housing as not only a social necessity but also a significant contributor to economic growth, he noted.
The loan market in this category is likely to see substantial growth due to the increasing potential demand for affordable housing.
The dependence on loans is significantly higher in the affordable housing sector compared to premium housing in India.
With an assumed 77 percent loan dependency and varying loan-to-value (LTV) ratios, the potential financing opportunity for banks and Housing Finance Companies (HFCs) in the affordable housing segment is estimated to reach ₹45 lakh crore, according to the report.
