Market pulse: Affordable housing market to hit Rs 67L crore in six years

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 said.

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.