India The huge shortage of affordable houses in urban areas is becoming a serious problem. According to a new report, the demand for affordable houses in India is increasing, but the pace of making them has slowed down, causing a major imbalance in demand and supply of affordable houses. A report by Real Estate Consultation Company Night Frank India and National Real Estate Development Council (Nareedco) reported that the situation in 8 major cities of the country- Mumbai, Delhi-NCR, Bengaluru, Hyderabad, Chennai, Pune, Kolkata and Ahmedabad is quite worrisome.
Only one-third of affordable houses are being constructed compared to demand
Earlier in 2019, where more than one house was being built on the demand of each house, the figure has fallen to just 0.36 in the first half of 2025 (from January to June). This means that only one-third of the houses are being built against the demand. The report said that the current shortage of urban affordable houses in the country is 94 lakh units. Due to rapid growing urbanization, this deficiency can increase to three crore units by 2030. Naradco President G Hari Babu said that the problem of shortage of cheap houses in India has once again come to light due to the report of Knight Frank and Nareedko.
Currently 94 lakh houses shortage
He informed that at present there is a shortage of 94 lakh houses in the country, which can increase to 3 crore by 2030. Hari Babu said that it is a matter of concern that the demand for affordable houses is increasing, but their number is decreasing. Apart from this, the investment of private companies is also very low, due to which the problem is increasing further. Shishir Baijal, chairman of Knight Frank India, said, “The affordable house is not just a social need, but also an economic need. Government support in favor of demand has been commendable, but now it is very important to remove the obstacles of supply.”
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