Affordable Housing and Rental Reforms Crucial for India’s $5.8 Trillion Realty Vision
NEW DELHI, June 19, 2026: India’s real estate sector could become a $5.8 trillion market by 2047, but achieving that target will require major policy reforms in affordable housing, rental housing and homebuyer protection, according to a joint report released by KPMG in India and NAREDCO.
The report was unveiled during the NAREDCO Real Estate Conclave 2026 in New Delhi and highlights the growing importance of housing as India continues to urbanise at a rapid pace.
According to the report, nearly 40% of India’s population is expected to live in urban areas by 2036, while cities could house almost half of the country’s population by 2050. This shift is expected to generate significant demand for homes, rental accommodation and supporting infrastructure.
Four Areas Identified as Critical
The report outlines four major priorities that could shape the future of India’s housing market:
- Expansion of affordable housing supply
- Development of a stronger rental housing ecosystem
- Better protection for homebuyers in stressed projects
- Stronger implementation of RERA regulations
Industry experts believe these reforms will be necessary to ensure that future housing demand is met efficiently while maintaining transparency and buyer confidence.
Affordable Housing Remains a Key Challenge
The report notes that housing affordability continues to face obstacles such as limited land availability, restrictive development norms, lengthy approval processes and expensive funding options.
To address these challenges, the study recommends increasing land availability, simplifying approvals, improving access to low-cost finance and encouraging housing development through targeted policy support.
Rental Housing Gains Importance
With migration to cities expected to rise, the report also highlights the need for a more organised rental housing market.
Recommendations include expanding affordable rental housing models, converting underutilised properties into rental stock and creating dedicated housing solutions for students, working professionals, migrant workers and senior citizens.
Stronger Homebuyer Protection Needed
The report stresses that closer coordination between RERA and insolvency mechanisms could help safeguard homebuyers when projects face financial distress.
Suggested measures include faster project-level resolution systems, stronger regulatory coordination and improved monitoring of delayed projects.
Why This Matters
For homebuyers, the report signals that affordable housing and regulatory reforms will remain at the centre of India’s real estate policy discussions over the coming years.
For investors and developers, it highlights the scale of future housing demand expected from rapid urbanisation and infrastructure-led growth.
As India moves towards becoming a more urban economy, the housing sector is likely to play an increasingly important role in economic growth, employment generation and long-term investment activity.