India's Affordable Housing Demand To Surge by 2030

India's affordable housing demand is set to reach 31.2 million by 2030, with a market size of Rs 67 trillion. Urbanization and job opportunities are key drivers, with 95.2% demand in the affordable segment. The segment, reliant on loans, poses a massive financing opportunity for banks and housing companies.

The cumulative demand for affordable housing in India is projected to surge to 31.2 million units by 2030, as revealed by a report from CII - Knight Frank India. The market size is estimated to reach Rs 67 trillion, driven primarily by demand in urban centers.

The report highlights that of the 22.2 million units needed in urban India, a staggering 95.2% will be within the affordable housing segment, equating to 21.1 million units. Notably, 45.8% of this demand is concentrated among economically weaker section (EWS) households.

Currently, the affordable housing loan market in India stands at Rs 13 trillion. Housing Finance Companies (HFCs) account for Rs 6.9 trillion, with Scheduled Commercial Banks (SCBs) maintaining a Rs 6.2 trillion share. The increasing demand presents a financing possibility worth Rs 45 trillion for these financial entities as they cater to the segment's loan dependency of 77%.

(With inputs from agencies.)