December 5, 2024
2 mins read

India’s Housing Market Set to Soar 

Led by factors such as urbanisation and employment opportunities, 22.2 million units of housing will be required in urban centres in the country…reports Asian Lite News

India’s affordable housing market is projected to reach Rs 67 lakh crore by 2030, with cumulative demand likely to be 31.2 million units, a report showed on Wednesday.  

The existing shortage as well as upcoming demand for the affordable housing segment in India is estimated to be 30.7 mn units by 2030 and the opportunity to finance these units is calculated to be Rs 44 lakh crore, according to the report by Knight Frank India and CII. 

Led by factors such as urbanisation and employment opportunities, 22.2 million units of housing will be required in urban centres in the country. Almost 95.2 per cent of this demand, equivalent to 21.1 million units, will be concentrated in the affordable housing segment, the report mentioned. 

A predominant share of 45.8 per cent of the demand will be concentrated among the economically weaker section (EWS) households as there is already an existing shortage of 10.1 million units. 

The current portfolio of the affordable housing loan market in India is estimated to be Rs 13 lakh crore, with Housing Finance Companies (HFCs) constituting Rs 6.9 lakh crore and Scheduled Commercial Banks (SCBs) holding a share of Rs 6.2 lakh crore. 

“As urbanisation accelerates and income levels rise, affordable housing is positioned to play a pivotal role in shaping the country’s real estate landscape,” Knight Frank India Chairman and Managing Director, Shishir Baijal, said. 

Addressing this demand will require innovative strategies, including public-private partnerships, policy interventions, and advancements in construction technologies, making affordable housing not just a social imperative but also a critical driver of economic growth, he added. 

The loan market in this category is anticipated to experience significant expansion due to the escalating potential demand for affordable housing. 

The reliance on loans is notably high in the affordable housing segment as compared to premium in India. 

Based on an assumption of a 77 per cent loan dependency and loan-to-value (LTV) ratios applied at various loan thresholds, the potential financing opportunity for banks and Housing Finance Companies (HFCs) in the affordable housing segment is estimated to be Rs 45 lakh crore, said the report. 

ALSO READ: ‘Kerala a Jewel in India’s Startup Crown’ 

Previous Story

Bitcoin Hits $100K, Eyes $120K 

Next Story

India seeks withdrawal of Israel from Palestine 

Latest from Business

Recovery From Realty Stress Rises

Crisil expects residential demand in these markets to grow by 7–9 per cent in FY26, offering critical support to projects now being revived through restructuring Asset Reconstruction Companies (ARCs) are expected to

India’s Millionaire Wealth Surges

Strong equity markets and investor optimism around artificial intelligence (AI) played key roles in bosting returns and overall wealth creation India recorded a robust 8.8 per cent rise in high-net-worth individual (HNWI)

IMEC Touted as Game-Changer for India’s Growth

The event brought together experts from the governments, academia, industry and private businesses across the globe…reports Asian Lite News The India-Middle East-Europe Economic Corridor (IMEC) has the potential to be a “game-changer”
Go toTop

Don't Miss

Indian Navy deploys warships in Arabian Sea

Navy warships will be further enhancing their patrolling in the

6 Assam cops killed in Assam-Mizoram border clashes

The injured Assam policemen and civilians were admitted to the