Affordable Housing Crisis: 15-20% Drop First Time in 45 Years, Says Expert

He noted that while the overall industry is growing, the sector meant for low-income buyers is shrinking. "The biggest problem we see today in housing is in the affordable housing segment," Hiranandani said.

The real estate market as a whole is seeing a rise in construction and sales. Speaking exclusively to ANI, Dr Hiranandani pointed out that housing grew by 10 per cent last year. He expects even better results in the coming months, stating that it "is expected to grow between 12% and 15% this year."

He mentioned that "overall, more housing is being built and sold," but cautioned that this growth does not tell the whole story.

Despite the general boom, the number of affordable homes being built has dropped sharply. Dr Hiranandani revealed that "for the first time in 45 years, the total number in the affordable housing segment has declined by 15-20% nationwide." This decline comes at a time when the demand for low-cost homes remains high across the country.

To fix this, the industry leader suggested that the government must look at past successes for inspiration. He recalled how specific interventions helped the market during the pandemic.

"There are several solutions for this. Some were tried during COVID; for example, the Maharashtra government reduced stamp duty by 50% and waived other charges," he said. He noted that these specific actions "significantly improved affordable housing" at that time.

Dr Hiranandani also proposed looking at different ways to house people, such as focusing on rentals rather than just ownership.

"Another is the scheme of rental housing," he suggested. He emphasised that both federal and local authorities must act quickly to provide financial relief to developers and buyers. He stated that "both the central government and state governments need to develop schemes to provide relief in this sector, either through reduced charges, stamp duty, or tax incentives."

The goal of the industry body NAREDCO is to find practical ways to meet the government's housing targets. Dr Hiranandani confirmed that the organisation is actively looking for new strategies. "Today, NAREDCO will examine various ideas and thoughts on how to achieve the goal of 'Housing for All'," he said. He described this mission as "the Prime Minister's goal, the Ministry's goal, NAREDCO's goal, and my goal."

He also expressed confidence that the government would support these efforts to ensure everyone has a home. He believes that collaborative work will lead to the right results.

"We will work together to explore alternative solutions, and I am confident we will receive proposals that provide housing for all," Dr Hiranandani said. He acknowledged that while changes take time, the commitment is there.

He added that "it may take a couple of weeks or months to get started, but I am certain that both the Prime Minister and the Ministry will take action because we have to achieve the Prime Minister's objective."

- ANI