First-Time Homebuyers Could Drive India's Next Phase of Housing Growth
India’s housing market has a problem that goes beyond the number of homes being built. For many people buying a house for the first time, finding a property they can afford is becoming difficult. At CII Realty 2026 in New Delhi on October 28, real estate industry leaders discussed why developers need to pay more attention to this group instead of concentrating mainly on wealthy buyers.
Ashwinder R Singh, vice-chairman and CEO of BCD Group, said first-time buyers could offer significant growth opportunities for the sector. He also chairs the CII Northern Region Committee on Real Estate. Access to home loans is a major part of the issue, as buyers need financing they can manage over the long term.
The ₹45 lakh affordable housing limit
One issue raised at the conference was the price limit used to define affordable housing. The current threshold is ₹45 lakh, a figure introduced in 2017. Industry leaders questioned whether it still reflects property prices today.
Boman Rustom Irani, the managing director and chairman of Rustomjee Group, said that the limit needs a relook. According to him, ₹45 lakh, which was in 2017, would come to about ₹88 lakh in 2026 post-inflation.
Anil Saraf, the chairman and managing director of ASF Group of Companies, too has asked for alteration in the classification of affordable housing. In his view, housing categories should take buyers’ incomes and purchasing capacity into account. He also called for better incentives for first-time buyers and easier access to home loans.
The sales figures discussed at the event show the pressure on the lower-priced segment. Luxury home sales rose by 14%, while affordable housing sales declined by 9%. Homes priced below ₹50 lakh made up only 6% of new launches in the previous quarter. Sales in this price bracket fell by 25% in the first quarter.
More launches, but what about buyers?
Housing supply is another concern. Across India's seven major cities, sales increased by 3%, compared with an 18% rise in new launches. Unsold inventory also grew by 12%. Hyderabad, Bengaluru and the Mumbai Metropolitan Region recorded demand growth, while other major markets saw declines.
The conference also addressed the money needed to complete stalled housing projects. Saraf put the funding requirement at approximately ₹55,000 crore and called for intervention to prevent financial difficulties from leading to defaults or insolvency proceedings.
The discussion pointed to a gap between the homes developers are bringing to market and what buyers can afford. More construction alone may not solve that problem. For first-time buyers, property prices and access to financing remain central concerns. Industry leaders are calling for changes that could make homeownership more accessible to a wider section of the population.
