Aam Aadmi Party Rajya Sabha MP and Founder-Chancellor of Lovely Professional University, Dr. Ashok Kumar Mittal carrying forward his commitment to raise people-centric issues sought clear answers from the Union Government on the inflationary pressures affecting India's affordable housing sector.
In an opportunity via a starred question during the Monsoon Session today, Dr. Mittal asked the Union Housing and Urban Affairs Ministry about rising housing prices, the impact of interest rate cuts on affordability, why developers are exiting affordable projects, and what measures exist to lower land costs and support first-time homebuyers.
Replying to Dr. Mittal's targeted questions, the Union Housing and Urban Affairs Minister Shri Manohar Lal acknowledged that the Centre does not maintain data on housing prices or rent trends, despite concerns over affordability rising nationwide.
Interestingly, while the Housing Price Index has grown 5.3% annually since 2018, key support measures like tax exemptions and concessional GST rates have expired by 2022.
Once, Rs50 lakh meant a starter flat in a metro city. Today, that figure barely buys walls on the outskirts. In 2025’s metros, middle-class families find themselves priced out, emotionally spent, and geographically displaced.
Rising material costs and vanishing options make each search feel like chasing a moving finish line. And even as salaries rise, homes remain a silent heartbreak. Now, young professionals are asking not where they’ll buy — but if they ever will.
There was a time when Rs50 lakh bought more than square footage — it bought a future. First homes, first keys, first weekends spent measuring curtains and memories. But now, that price tag mostly draws blank stares and hopeful sighs. According to Knight Frank’s H1 2025 report, just 30,806 homes were launched under Rs50L across India’s top eight cities — 31% fewer than last year. In Bengaluru, supply has collapsed 85% since 2018; in Kolkata, it’s 67%. Even Mumbai, once brimming with mid-income launches, recorded an 11% drop.
Builders say the maths no longer adds up. Land costs consume 35–40% of a project’s budget, materials like steel and cement are at record highs, and the bureaucratic crawl of approvals makes affordable housing a financial paradox. There’s simply no cushion left to build what once was considered basic. Instead, the spotlight swings toward luxury launches and investor-grade properties — glossy towers aimed at buyers with balance sheets, not budgets.
“Affordable housing must go beyond price—it’s about infrastructure, connectivity, and total cost of ownership,” added G Hari Babu, National President, NAREDCO. But here’s the truth. Middle-income families are being pushed farther from city centers, into locations where the commute eats away at time, energy, and quality of life. “Affordable” doesn’t mean livable anymore — just available.
Middle Class still dream of a front door key — but the cost keeps slipping out of reach. The burden isn’t just the sticker price. Stamp duty. GST. Brokerage. Maintenance. The ecosystem is unforgiving. Every cost builds a wall. Not a home.
EMIs now swallow 48% of monthly income in Mumbai. In other metros, it’s 30–35%. What’s left for emergencies, investments, or even a moment’s peace? Homeownership has become a waiting game — deferred, diluted, sometimes abandoned. Rent is no longer a stepping stone. For many, it’s the destination.
Schemes like PMAY and ARHCs sparked hope. But hope stalls at the last mile — stuck in land bottlenecks and contractor reluctance. We call it “affordable.” But by whose measure? What’s affordable for policy may be unaffordable for a life.
