Launches of affordable homes plunge to 1/3rd of sales in Jan-Jun across top 8 cities: Report

New Delhi, Aug 29 (PTI) New supply of affordable homes, each costing up to Rs 50 lakh, across eight major cities during the first half of 2025 plunged to almost one-third of sales of low-cost housing, according to a NAREDCO-Knight Frank report.

At a conference here on Friday, real estate industry body NAREDCO and real estate consultant Knight Frank India released a report, 'Affordable Housing: Tackling Urban Housing Deficit Through Supply-Side Reforms', which pointed out critical supply challenges in India's affordable housing sector.

The report mentioned that the ratio of launches of affordable homes to sales of housing units costing up to Rs 50 lakh across the top 8 cities has plummeted to 0.36 in 2025 (until June), down from 1.05 in 2019 and 1.30 in 2020.

These eight cities are Bengaluru, Delhi-NCR, Mumbai Metropolitan Region (MMR), Pune, Kolkata, Hyderabad, Chennai and Ahmedabad.

G Hari Babu, President at NAREDCO, said the report has underlined the scale of India’s affordable housing challenge - a deficit of 9.4 million units that could rise to 30 million units by 2030.

"The fact that new supply in this segment has dropped sharply while demand continues to grow is a matter of concern. Limited private investment further widens the gap," he added.

He stressed the need for bold supply-side reforms - unlocking PSU land for housing, rationalising FSI norms, and enabling subsidised construction finance.

Shishir Baijal, Chairman and Managing Director, Knight Frank India, said, "While policy support on the demand side has been commendable, there is a pressing need to address supply-side barriers." He said there is a need to encourage private sector participation in the affordable housing segment. PTI MJH MJH SHW