Construction site for a new housing development in an Indian city under overcast skies.
India’s urban housing sector is on the cusp of a significant transformation, driven by increasing urbanization and strategic policy shifts. A recent report by KPMG highlights a multi-faceted approach to unlock the next phase of growth, focusing on critical areas such as affordable housing, the formalization of rental housing, and the strengthening of the Real Estate (Regulation and Development) Act (RERA) framework.
The report underscores the pressing need for increased supply of affordable housing, particularly for lower-income groups. Key challenges identified include high land costs and lengthy approval processes, which have historically hampered development. Addressing these bottlenecks is crucial for making housing more accessible in India’s rapidly expanding urban centers.
Furthermore, the analysis points to the burgeoning potential of rental housing, advocating for its recognition and development as a formal asset class. This shift could provide more flexible living solutions and attract institutional investment into the sector.
Crucially, the report calls for robust reforms within the RERA framework. These reforms are aimed at enhancing trust and efficiency in the real estate market, ensuring greater transparency, timely project completion, and improved buyer protection. By bolstering the regulatory environment, India seeks to foster a more stable and attractive real estate investment landscape.
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