**New Affordable Housing Supply Declines in Major Indian Cities**
**Meta Description:** Affordable housing supply in India’s top cities has dropped significantly, highlighting a growing urban housing deficit.
**URL Slug:** affordable-housing-supply-decline-india
**New Affordable Housing Supply Declines in Major Indian Cities**
In a concerning trend for the affordable housing sector, new supply of homes priced up to ₹50 lakh in eight major Indian cities has fallen to nearly one-third of the sales of low-cost housing during the first half of 2025. This alarming statistic comes from a report released by NAREDCO and Knight Frank India, titled ‘Affordable Housing: Tackling Urban Housing Deficit Through Supply-Side Reforms’, presented at a recent conference.
The report reveals that the ratio of affordable home launches to sales in these cities has plummeted to 0.36 in 2025 (up to June), a significant drop from 1.05 in 2019 and 1.30 in 2020. The cities analyzed include Bengaluru, Delhi-NCR, Mumbai Metropolitan Region (MMR), Pune, Kolkata, Hyderabad, Chennai, and Ahmedabad.
G Hari Babu, President of NAREDCO, emphasized the magnitude of India’s affordable housing crisis, which currently stands at a deficit of 9.4 million units and could escalate to 30 million units by 2030. He expressed concern over the sharp decline in new supply amidst rising demand, attributing the widening gap to limited private investment. Babu called for bold supply-side reforms, including unlocking public sector land for housing, rationalizing Floor Space Index (FSI) norms, and facilitating subsidized construction finance.
Shishir Baijal, Chairman and Managing Director of Knight Frank India, noted that while demand-side policy support has been commendable, there is an urgent need to tackle supply-side barriers. He highlighted the importance of encouraging private sector participation in the affordable housing market to address the growing deficit effectively.
As the demand for affordable housing continues to rise, the need for strategic reforms and increased investment in this sector has never been more critical.
**FAQ**
**What is the current status of affordable housing supply in India?**
The supply of affordable housing in major Indian cities has significantly decreased, with the ratio of new launches to sales dropping to 0.36 in 2025, indicating a growing urban housing deficit.