If affordable housing needs a policy correction every few years… was it ever truly defined correctly in the first place? The recent Times of India article on banks and industry bodies urging the government to redefine affordable housing reflects a reality the real estate sector has been witnessing for years. India’s housing market has changed dramatically. But our definitions haven’t. A ₹45 lakh cap may have made sense in 2017. But in 2026, after rising land costs, construction inflation, financing costs, regulatory expenses, and urban infrastructure expansion, the conversation has become far more complex. And this is not just about luxury versus affordable. There is a large segment of aspirational homebuyers — especially in cities like Bengaluru — who do not belong to the ultra-premium category, yet are equally excluded from the benefits of “affordable housing” because policy definitions no longer match urban realities. Today, even a thoughtfully planned, mid-segment home closer to workplaces, schools, and infrastructure often crosses older affordability thresholds. That does not make the buyer “high-end.” It simply reflects the economics of modern urban development. What I find encouraging is that this conversation is now moving beyond developers. When banks, financial institutions, and policymakers collectively acknowledge that ticket sizes and interest burdens have fundamentally changed, it signals maturity in the ecosystem. Because affordability should not be viewed only through price. It should also be viewed through: * accessibility to financing * quality of life * commute reduction * infrastructure connectivity * long-term liveability * and sustainable urban planning India’s next phase of growth will not come from building cheaper cities. It will come from building smarter and more inclusive ones. And for that, housing policies must evolve with the aspirations of a growing nation. The definition of affordable housing should not be frozen in history while cities continue to evolve every single day. #RealEstateIndia #AffordableHousing #BengaluruRealEstate #UrbanDevelopment #HousingPolicy #CREDAI #Homebuyers #ThoughtLeadership
Nittin Gargg
3mo
Affordable housing stops making sense the moment definitions age faster than cities do. If banks and policymakers are now forced to revisit it, it is really a signal that the real issue was never demand, it was outdated assumptions about how India actually builds and lives today.
Gaurav Aggarwal
3mo
Strong point. The real issue is less about labels and more about policy definitions lagging behind today’s urban costs and realities. Affordability needs a more dynamic, multi-factor view, not just a static price cap.
Sidhant Virmani
3mo
Government must come out with a land acquisition plan because that is the biggest raw material for a builder and if that is just so expensive, how can you expect the flats or the units to be affordable? There is no sense of coherent land conversion. You can check in Gurugram: for the last 10 to 12 years there has been no significant change land use license issued. You can check it's zero.
Suhail Ahmad
3mo
Well said. Affordability can no longer be defined only by ticket size. In urban markets today, access, commute, financing, and livability are equally important parts of the equation.
T M Musavvir
3mo
Affordable housing can no longer be defined by old price caps alone. Mohan R In today’s urban India, affordability is equally about income growth, commute, financing cost, and quality of life. Strong perspective.
Swastika Pathak
3mo
Well articulated. Affordable housing can no longer be defined by outdated price caps alone. Real affordability today includes accessibility, infrastructure, commute, financing, and quality of living in rapidly evolving urban cities.
Pooja Khosla
3mo
Really like how you expanded affordability beyond price alone, because liveability and accessibility are equally important parts of the equation.
Prashant Nirmal
3mo
Housing policies create real impact only when they evolve with changing urban realities and costs.
Hemanand Gopal
3mo
Affordable housing definitions must evolve with rising costs and changing urban realities.
A very well-articulated perspective Mohan R The current affordable housing definition was framed in 2017 based on the market realities of that time or the past. Nearly a decade later, rising land, construction, financing, and regulatory costs have made those thresholds increasingly disconnected from urban realities. Any revision today should go beyond adjusting for past inflation. It should also account for projected cost increases over the coming years, so the policy remains relevant when implemented. In that sense, the next definition of affordable housing should be future-ready and forecast-based, rather than another policy anchored in historical assumptions.