Affordable Housing Sales Fall 20% Across Major Cities; Bengaluru, Chennai and Kolkata Defy Trend: Niranjan Hiranandani

India’s affordable housing market is witnessing signs of strain as sales in the segment have dropped nearly 20% over the past 18 months, according to real estate veteran Niranjan Hiranandani, Co-founder and Managing Director of Hiranandani Group. Despite strong overall economic growth, he noted that affordability challenges are weighing heavily on homebuyers, particularly in the low-income segment.

Speaking in a recent podcast interview, Hiranandani revealed that while India’s real estate industry continues to expand, the most price-sensitive category—affordable housing—is under growing stress. He said, “In the last 18 months, affordable housing sales have fallen by almost 20%. Those who have earned more now aspire for better homes, but a large section of buyers at the lower end are struggling to manage their EMIs.”

Cities such as Mumbai, Pune, Delhi-NCR, Hyderabad, and Ahmedabad have recorded significant slowdowns, while Bengaluru, Chennai, and Kolkata are the only major urban markets to post year-on-year growth in residential sales, according to recent data by PropTiger’s Real Insight Residential Report. The report also pointed out that overall home sales across the top eight cities declined by 14% during the April–June 2025 quarter.

Hiranandani attributed the slowdown to rising interest rates, cost escalations, and increased EMI burdens, making it difficult for first-time homebuyers to keep up with repayments. He added that the real estate sector is now working closely with the government and regulatory bodies to ease financial pressure on the most vulnerable segment of buyers.

“We are engaging with the government under the Pradhan Mantri Awas Yojana (PMAY) to bring down EMIs and interest rates. State governments also need to step in by reducing stamp duties and offering other relief measures,” Hiranandani emphasized.

He concluded by urging swift policy support to revive affordability in the housing market, emphasizing that protecting low-income homebuyers is crucial for sustaining India’s long-term real estate growth story.