NITI Aayog proposes affordable housing reforms

At the National Conference on 'Reimagining Affordable Housing - From Scheme to Sustainable Ecosystem' in Delhi, India — NITI Aayog Member Rajiv Gauba emphasized that land supply and urban planning reforms are critical to expanding affordable housing in Indian cities. He stated that land availability is the most binding constraint, as land accounts for a high share of total housing project costs, making affordable housing projects less viable. Gauba highlighted a joint India — NITI Aayog and India — Ministry of Housing and Urban Affairs report proposing measures to address these constraints, with implementation largely resting with state and municipal authorities. Key recommendations include expanding planned urban areas, reserving at least 10% of residential land as affordable housing zones in master plans, raising permissible Floor Area Ratio (FAR) to 5 or 6, promoting transit-oriented development, land pooling, transferable development rights, easing parking and density norms, and creating land banks. He also suggested waiving land-use change fees for land dedicated to affordable housing and exempting affordable housing units from stamp duty. Gauba called for strengthening the rental housing ecosystem, noting that ownership is not the only solution for migrant workers, industrial labour, students, and young professionals. He pointed to nearly 1 crore vacant houses in urban India due to weak tenancy frameworks, low rental yields, and litigation risks. Access to capital was identified as another major constraint, with calls for alternative underwriting approaches and new financial products. Gauba urged the India — Ministry of Housing and Urban Affairs to use its funding leverage to push states to implement the reform agenda and to produce a time-bound action plan.