India's affordable housing shortage to triple by 2030: Report
What's the story
India is staring at a massive shortfall of affordable homes, with the gap expected to widen threefold by 2030. The country currently has a deficit of around 10 million affordable homes, according to real estate consultancy Knight Frank. The situation is being driven by rising home prices and an increasing number of people unable to afford them.
Economic disparity
Economic divide in housing sector
Despite India's economy growing at a robust 7.8% last quarter, the benefits are not reaching all sections of society. This has created an economic divide, especially in the housing sector. While demand for premium homes is on the rise, affordable housing options are lagging behind. A Reuters poll of property experts predicts that average home prices will rise by 6.3% this year and by 7% in 2026.
Market shift
Entry-level buyers pushed out of market
The rising prices are likely to push entry-level buyers out of the market, even with seemingly beneficial policies. Avneesh Sood, Director at Eros Group, said recent rate cuts may provide some relief on mortgage payments but home prices are increasing by 7-8% nationally. Pankaj Kapoor from Liases Foras noted that post-financialization in real estate has worsened affordability, pushing the qualifying age for property purchase from around 30-40 years to 45 years old.