Bridging the Urban Gap: KPMG-NAREDCO Report Highlights India’s Affordable Housing Crisis

This trend poses a significant challenge to the government’s 'Housing for All' objectives. Without adequate affordable housing, rapid urbanization often leads to the proliferation of informal settlements and slums, which lack basic amenities like sanitation, clean water, and safe electricity. This not only creates a public health risk but also exacerbates urban poverty and social stratification. The report emphasizes that the current market trajectory may lead to a 'missing middle' in urban housing, where even middle-income earners find it difficult to secure quality accommodation. To mitigate this, the report suggests a multi-pronged approach: streamlining land acquisition processes, providing tax incentives specifically for affordable housing projects, and promoting innovative construction technologies to reduce costs. Furthermore, urban planning must transition from a reactive to a proactive model, ensuring that infrastructure development keeps pace with demographic shifts. UPSC Relevance: This report is highly relevant for GS Paper I (Urbanization and associated issues) and GS Paper III (Inclusive Growth and Infrastructure). It provides contemporary data for answers regarding urban planning failures, the socio-economic impact of housing shortages, and the necessity of government intervention in the real estate market to ensure equitable urban development.