Indian Cities Face Shortage of 18.8 Million Homes

However, market watchers of Indian real estate industry support Kundu’s statement stating that as developers rarely can develop volumes within 500 square feet in Indian cities, the need for affordable housing has reduced compared to luxury housing with expensive prices. 

Kundu also said that Indian policy makers need to look carefully about the matter of providing better incentives to developers to launch residential projects under affordable housing segment. “Obviously there have to be targeted subsidies. People who are building [units of] less than 250 square feet, they should be getting a subsidy,” added Kundu, reports The Wall Street Journal.

According to Kundu, a fraction of housing shortage is declining due to the amount of people relocating into cities. “Cities have become exclusionary and Labor market demands are different,” he said, reports WSJ.

In 2012 report, the calculation of housing shortage has included the number of homeless people, number of ancient homes and also the number of homes that age around 40 to 80 years and lying in poor condition. Totaling everything, the number of housing shortage recorded at 18.8 million.

In 2007 report, the estimated housing shortage was at 24.7 million and the report had included some double counting numbers as well but simultaneously, the report did not count the homeless people, therefore the accurate count for the shortage would be around 23 million, said Kundu.