NEW DELHI: By 2030, India’s affordable housing shortage is projected to reach a staggering 31.2 million units, representing a potential market size of Rs 67 trillion, according to a joint report released by the Confederation of Indian Industry (CII) and real estate consultancy Knight Frank India.
The report, titled Affordable Housing in India, highlighted an existing shortage of 10.1 million housing units, underscoring the scale of the crisis. Released at a conference on Wednesday, the report offers insights into the opportunities for stakeholders in real estate and financial services.
Ghulam Zia, Senior Executive Director at Knight Frank India, emphasised that the housing deficit in the affordable segment poses significant challenges while simultaneously presenting a robust business opportunity for developers.
“This affordable housing shortage, projected to grow cumulatively to 31.2 million units by 2030, represents a massive market potential,” Zia said.
Good prospects for FIs
Beyond real estate developers, the affordable housing sector holds promise for financial institutions. The report estimates that with a 77 per cent dependency on loans and varying loan-to-value ratios across thresholds, the financing opportunity for banks and Housing Finance Companies (HFCs) in affordable housing segment could expand to Rs 45 trillion. This figure is triple the current loan volume in the affordable housing space.
The findings underline the need for targeted interventions in the affordable housing sector to bridge the demand-supply gap and tap into the massive financing potential, creating opportunities for developers and financiers alike.
