New Delhi [India], December 4 : The cumulative affordable housing demand in India is projected to reach 31.2 million by 2030, with the market sise estimated at Rs 67 trillion, according to a report by CII - Knight Frank India.
As per the report, about 22.2 million units of housing will be required in urban centres in India. 95.2 per cent of this demand, which is equivalent to 21.1 million units, will be concentrated in the affordable housing segment. A predominant share of 45.8 per cent of the demand will be concentrated amongst the EWS households.
It added that there is already an existing shortage of 10.1 million units.
The factors such as urbanisation and employment opportunities are driving the demand for new houses, the report added.
The current portfolio of the affordable housing loan market in India is estimated to be Rs 13 trillion, with Housing Finance Companies (HFCs) constituting Rs 6.9 trillion and Scheduled Commercial Banks (SCBs) holding a share of Rs 6.2 trillion.
The loan market in this category is anticipated to experience significant expansion due to the escalating potential demand for affordable housing.
The reliance on loans is notably high in the affordable housing segment as compared to premium in India. Based on an assumption of a 77 per cent loan dependency and loan-to-value (LTV) ratios applied at various loan thresholds, the potential financing opportunity for banks and housing finance companies (HFCs) in the affordable housing segment is estimated to be Rs 45 trillion.
As per the report, the affordable housing segment attracted capital inflows of USD 1.6 billion between 2011 and September 2024. This represents just 9.8 percent of the total capital directed towards the residential sector and a mere 3.6 percent of the overall real estate sector inflows.
Shishir Baijal, Chairman and Managing Director, Knight Frank India, said, "This demand will largely stem from urban centres, driven by the needs of economically weaker section (EWS) households. As urbanisation accelerates and income levels rise, affordable housing is positioned to play a pivotal role in shaping the country's real estate landscape.

He further added that addressing this demand will require innovative strategies, including public-private partnerships, policy interventions, and advancements in construction technologies, making affordable housing not just a social imperative but also a critical driver of economic growth.