A KPMG report says India’s urban housing and development sector is likely to undergo a structural shift as rapid urbanisation, infrastructure buildout, and policy reforms converge. It projects that the urban population will rise to around 40% by 2036 and that nearly half of Indians will live in cities by 2050, arguing that housing, planning, and financing decisions made now will shape longer-term outcomes toward “Viksit Bharat 2047.”
The report identifies affordable housing—especially for Economically Weaker Sections (EWS) and Low-Income Groups (LIG)—as a major priority, noting that project viability is constrained by high land prices, approval delays, fragmented regulations, and limited access to financing. It recommends measures such as increasing floor area ratio (FAR) for affordable housing, introducing single-window clearance, digitising land records, and reducing development charges, alongside stronger last-mile infrastructure and better alignment of master plans with growth.
It also points to rental housing as an emerging segment and calls for formalising it into a more organised market through steps including GST-related changes and priority-sector lending. The report further highlights the need to improve coordination between RERA and the Insolvency and Bankruptcy Code to support early stress detection and timely insolvency resolution to protect homebuyers.
