There will be a shortage of 3.12 crore affordable houses by 2030- Report
New Delhi| There will be a shortage of 3.12 crore affordable houses in the country by 2030. Confederation of Indian Industry (CII) and Knight Frank India’s ‘Affordable Housing in India report released on Wednesday said the shortfall is an opportunity for a real estate developer to make the size of the affordable housing market worth Rs 67 lakh crore. There is already a shortage of 1.01 crore affordable houses in the country.
Ghulam Zia, Senior Executive Director (Research, Consultancy, Infra & Evaluation), Knight Frank India, said, there is a shortage of affordable housing in India. This presents a huge business opportunity for the real estate developer. The affordable housing sector can also provide many opportunities for financial institutions.
The report said potential funding for banks and housing finance companies in the affordable residential category could reach Rs 45 lakh crore based on 77 per cent debt dependency and loan-value ratios applied at various credit limits. This reflects a substantial increase, which is three times the amount of existing debt in this category.
The CII and Knight Frank India reports that close to 1.9 lakh acres will be required to meet the demand of 3.12 crore affordable housing by 2030. This demand is focused on income groups with annual earnings of up to Rs 9 lakh. These are divided into EWS (annual income Rs 3 lakh), LIG (Rs 3-6 lakh) and MIG (Rs 6-9 lakh).
