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A NAREDCO-Knight Frank report highlighted that affordable housing supply across India's eight largest cities has fallen to almost one-third of demand in the first half of 2025. Homes priced up to INR 50 lakh are witnessing strong sales but limited new launches, raising concerns over the widening housing deficit. Industry leaders noted that while demand-side measures have been effective, urgent supply-side reforms are required to address the shortfall.
In a report presented in New Delhi during the past week, real estate industry body NAREDCO and property consultant Knight Frank India revealed critical supply challenges in the country's affordable housing segment. The study, titled Affordable Housing: Tackling Urban Housing Deficit Through Supply-Side Reforms, showed that new launches of homes priced up to INR 50 lakh across the top eight cities have fallen significantly compared to sales volumes. Advertisement
The report stated that the ratio of new launches to sales of affordable housing units stood at 0.36 in the first half of 2025, a sharp decline from 1.05 in 2019 and 1.30 in 2020. The cities covered in the analysis included Bengaluru, Delhi-NCR, the Mumbai Metropolitan Region (MMR), Pune, Kolkata, Hyderabad, Chennai and Ahmedabad.
G Hari Babu, President of NAREDCO, observed that the report underscored India's housing deficit, currently estimated at 9.4 million units and projected to increase to 30 million units by 2030. He remarked that the steep drop in supply despite rising demand was a matter of concern and added that limited private sector investment has further widened the gap. He stressed the urgency for supply-side reforms such as unlocking public sector land for housing, rationalising FSI norms, and making subsidised construction finance available.
Shishir Baijal, Chairman and Managing Director of Knight Frank India, said that while demand-side support from policymakers has been commendable, the challenge lies in addressing supply-side bottlenecks. He emphasised the need to create an environment that actively encourages private participation in affordable housing development.
Despite rising sales of low-cost homes, the lack of adequate new launches highlights systemic issues that require urgent policy intervention. Industry experts reiterated that without strong supply-side measures and greater private sector involvement, the housing deficit is likely to deepen, posing a significant challenge to urban development in the coming years.
Source - PTI
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