NITI Aayog member Rajiv Gauba said land supply and urban planning reforms are critical to expanding affordable housing in Indian cities as population growth and rapid urbanisation add millions of residents to towns and metropolises. He addressed a national conference on reimagining affordable housing and emphasised that land availability is central to project viability.

The report prepared by NITI Aayog and the Ministry of Housing and Urban Affairs proposes measures that largely require action by state and municipal authorities. It recommends expanding planned urban areas and reserving at least 10 per cent of residential land as affordable housing zones in master plans, raising permissible Floor Area Ratio (FAR) for such projects to five or six, and promoting transit-oriented development, land pooling and transferable development rights. The proposals also call for easing parking and density norms and creating land banks to lower acquisition costs and accelerate delivery.

Gauba suggested considering waivers of land-use change fees for land dedicated to affordable housing and exemption of affordable units from stamp duty to improve project viability and affordability. He pointed to excess unutilised land held by government entities, including state public sector undertakings, which could be unlocked and recycled into housing projects. He further highlighted the need to strengthen the rental housing ecosystem for migrant workers, industrial labour, students and young professionals and advocated alternative underwriting approaches and new financial products for households with limited formal income records.

He noted that there are nearly 10 million (mn) vacant houses in urban India and attributed the phenomenon to weak tenancy frameworks, low rental yields and litigation risks that keep units outside the market. He urged the Ministry of Housing and Urban Affairs to use its funding leverage under various missions to press states and municipal bodies to implement the reform agenda and sought an agreed time-bound plan of action from the conference.