INDIA: SIGNIFICANT PROGRESS MADE BY GOVERNMENT IN AFFORDABLE HOUSING

Over the past few decades, India has been witnessing increasing urbanization and inward migration to cities, which has resulted in a significant change in the demographic profile of its urban centers. Consequently, housing demand has been concentrated primarily in the affordable segment, with ticket sizes of around Rs. 35-70 lakh being considered a sweet spot. Developments in the affordable housing space, on the other hand, have been few due to limited availability of low-cost land, increasing construction costs, and low margin levels. Thus, a considerable demand-supply mismatch has been created in India’s cities. In rural centers as well, the housing quality has been very poor, with the vast majority of the rural population living in kutcha1 houses. In recognition of these issues, the Government of India has undertaken several initiatives to promote the development of good quality affordable housing, with the stated goal of providing Housing for All by 2022. The Indian real estate sector is of strategic economic importance to the Indian economy, as it is the second largest employment generator after agriculture and contributes about six per cent to India’s GDP.