Luxury vs. Affordable Homes: What's Driving India's Housing Market?

• India's housing market is split between a booming luxury segment (above 1 crore) and a struggling affordable homes sector.
• Luxury home sales, driven by rising incomes and investment perception, now account for over 30% of total sales in major cities.
• Affordable homes face declining sales due to increased land/construction costs, rising EMIs, inflation, and limited loan options.
• Basic Home Loan CEO Atul Monga emphasizes simplifying loan eligibility, extending payment periods, and assessing actual income for affordable housing.
• Digital lenders and fintech platforms are bridging the gap for first-time homebuyers, providing loans to those previously excluded by traditional banks.

Why It Matters: While luxury homes boom, strengthening affordable housing through loan reforms is crucial for India's inclusive growth.