Demand for Affordable Housing in India expects to hit 312 Units by 2030

The cumulative demand for affordable housing in India is expected to reach 312 lakhs by 2030, with the market estimated at 67 trillion rupees, according to the report.

There is already a shortage of 101 lakh units, according to the report titled Affordable Housing in India: Demand-Supply Assessment and Financing Opportunity launched during the CII Conference on Indian Housing Landscape.

The cumulative affordable housing demand in India is projected to reach 312 lakhs by 2030, according to an analysis by Knight Frank India.

Ghulam Zia, Senior Executive Director, Research, Advisory, Infrastructure & Valuation at Knight Frank India, spoke at the event and noted that the dearth of affordable housing in India presents a lucrative venture for property developers.

The cumulative shortage of affordable housing in India is expected to reach 31.2 million by 2030, with the market estimated at 67 trillion dollars, he said, adding that it also presents numerous opportunities for financial institutions.

Affordable housing presents both a pressing challenge and a chance to propel India's property development. As urbanization accelerates, it is imperative to bridge the housing deficit through innovative strategies and collaborations, said Neel Raheja, Chairman, CII National Committee on Real Estate and Group President, K Raheja Corp.

The report said that the potential financing opportunity for banks and Housing Finance Companies in the affordable housing segment is estimated to be 45 trillion, based on the assumption of a 77 per cent loan dependency and Loan-to-Value ratios applied at various loan thresholds.