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Luxury Homes Surge, Affordable Housing Gap Widening in India

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  Published in House and Home on Sunday, November 16th 2025 at 1:39 GMT by The New Indian Express

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Luxury Homes on Tap, but India’s Housing Crisis Persists

The New Indian Express article “Luxury homes on tap but housing in crisis” (dated 16 Nov 2025) paints a stark picture of India’s housing landscape: a booming luxury‑real‑estate market is juxtaposed against an ever‑widening gap in affordable housing. The piece, drawn largely from the latest data released by the Ministry of Housing & Urban Affairs (MoHUA) and a handful of industry reports, underscores how the nation’s wealthiest households are piling on high‑end residences while millions of Indians continue to struggle for basic shelter.

1. The Surge of Luxury Real‑Estate

According to the article, the number of luxury‑home projects (defined as those priced above ₹1 crore per square foot) across the country has increased by 18 % in the past two years, with flagship developments popping up in Delhi NCR, Mumbai‑Pune, Bengaluru‑Chennai, and Hyderabad. Developers such as DLF, Godrej & Boyce, and Oberoi Realty are cited as front‑runners, offering apartments with smart‑home integrations, 24‑hour concierge services, and “eco‑luxury” amenities like rooftop gardens and solar panels.

A noteworthy link in the article—directing readers to the Real Estate (Regulation and Development) Act, 2016 (RERA) portal—provides a database of approved luxury projects, showing that over 70 % of the projects in the top‑tier category are slated for completion by the end of 2026. The RERA link, https://rera.gov.in, also highlights the increasing transparency requirements for developers, a trend that has helped drive up construction costs.

2. A Housing Crisis That Keeps Growing

While luxury housing is in the limelight, the article turns sharply to the pressing shortage of affordable units. As per the National Housing Policy 2025, India needs 20 million affordable housing units by 2030—yet only 6 million units have been delivered to date. The disparity is especially severe in Tier‑I metros: in Delhi alone, the report cites that 1.2 million families still lack access to government‑subsidized housing.

The article also references a recent Housing in Crisis whitepaper by the Centre for the Study of Developing Societies (CSDS), which provides a deeper dive into rental affordability. The CSDS link (https://www.csds.org/india-housing-crisis) indicates that the median monthly rent in Mumbai is now 35 % higher than the 2010 level, and the rent‑to‑income ratio has surpassed the OECD recommended threshold of 30 % for 80 % of urban households.

3. Government Initiatives – A Patchwork Effort

MoHUA’s Pradhan Mantri Awas Yojana – Gramin (PMAY‑G) and Awas Yojana – Urban (PMAY‑U) are the flagship schemes aiming to address this imbalance. The article links to the PMAY portal (https://pmay.gov.in), which reports that over 5 million “Awas Gramin” units have been constructed since the scheme’s inception. However, the article highlights that the distribution mechanism often favors well‑connected urban peripheries over rural hinterlands, leading to uneven benefits.

NABARD’s (National Bank for Agriculture and Rural Development) role is also noted. The article points to the NABARD website (https://www.nabard.org), which documents the bank’s subsidised loan programmes for housing developers. Yet, the whitepaper cited argues that the low loan‑to‑value ratio and the pre‑construction nature of many projects mean that many small‑ and medium‑size developers are sidelined.

4. Land, Zoning and Policy Constraints

A critical theme in the article is land‑use policy. The Delhi Development Authority (DDA) link (https://www.dda.gov.in) is used to illustrate how high‑floor plans and luxury projects receive priority in the most valuable parcels. Critics argue that this preference inflates land prices across the board, making it prohibitively expensive for developers of affordable housing to secure plots.

The piece quotes a recent parliamentary debate where housing minister Ashwini Vaishnaw acknowledged that “the current zoning laws need to be revisited to allow for mixed‑use developments that combine luxury and affordable units.” The article further notes that the Affordable Housing (Amendment) Bill is still under consideration, a bill that would mandate a 30 % floor‑area ratio (FAR) for affordable units in every new luxury project.

5. The Human Cost

The article brings the data down to the human level by spotlighting a 28‑year‑old nurse from a small town in Uttar Pradesh who has been renting a two‑BHK flat in Lucknow for the past 12 years, paying ₹35 000 per month—more than double her monthly income. The narrative illustrates how the rising cost of living in metros has made renting a luxury or even a modest apartment essentially a financial nightmare.

It also highlights a “housing voucher” scheme that the government plans to roll out in 2026, designed to provide middle‑income families with a monthly stipend to offset rental costs. The link to the scheme (https://housing.gov.in/vouchers) details eligibility criteria and the phased rollout plan.

6. Where Are the Solutions?

The article proposes a multipronged approach:

1. Incentivizing Mixed‑Use Development – Developers could be offered tax breaks and expedited approvals if they incorporate an affordable unit quota in each luxury project.
2. Strengthening Public–Private Partnerships – The government should use its land banks to provide low‑cost plots specifically for affordable housing projects.
3. Improving Transparency – Leveraging RERA’s data analytics to monitor the allocation of plot sizes and ensure that developers meet their affordable housing commitments.
4. Community‑Based Financing – Encouraging micro‑finance institutions to extend home‑loans to lower‑income borrowers, supported by NABARD’s subsidy framework.

7. Conclusion

While the luxury‑real‑estate segment of India’s housing market may be flourishing, the article paints a sobering picture: the same market forces that drive luxury developments are exacerbating the affordable‑housing deficit. Without a concerted policy shift that aligns high‑end development with inclusive housing goals, India risks a future where housing becomes an even larger source of socio‑economic inequality.

The piece urges readers to consider the long‑term impacts of zoning and tax incentives, to keep a vigilant eye on RERA and PMAY dashboards, and to demand that every new luxury project carries with it a concrete plan for affordable housing. Only then can the “homes on tap” narrative truly benefit all strata of Indian society.