Housing shortage to reach 31.2 mn units by 2030: CII-Knight Frank report

India is estimated to have a cumulative affordable housing shortage of 31.2 million units by 2030 with a potential market size of Rs 67 trillion, according to a joint report by CII and Knight Frank.

Industry body CII and real estate consultant Knight Frank India on Wednesday released a joint report 'Affordable Housing in India' at a conference here, pointing out that there is already an existing shortage of 10.1 million units.

Addressing the event, Ghulam Zia, Senior Executive Director, Research, Advisory, Infrastructure & Valuation at Knight Frank India, pointed out the shortage of affordable housing in India, presenting a huge business opportunity for real estate developers.

"The cumulative Affordable housing shortage in India is projected to reach 31.2 million by 2030, with the market size estimated at Rs 67 trillion," he said.

The affordable housing segment also could provide a lot of opportunities for financial institutions.

"Based on the assumption of a 77 per cent loan dependency and Loan-to-Value ratios applied at various loan thresholds, the potential financing opportunity for banks and Housing Finance Companies in the affordable housing segment is estimated to be Rs 45 trillion," the report said.

This represents a substantial increase, being three times more than the existing loan volume in this segment, it added.