Telangana continues to face a significant shortfall in urban housing, with 20.33 lakh units unmet in the Lower Income Group (LIG) segment and 8.77 lakh in the Middle Income Group (MIG). With strong demand for affordable homes, experts say developers may need to consider constructing one-room housing units, while greater Public Private Partnership (PPP) involvement could accelerate supply.

These observations were made during a panel discussion titled Investment in Inclusion: Prospects in Affordable Housing, held on the second day of the Telangana Rising Global Summit 2025 at Bharat Future City on 9 December 2025.

Housing and Revenue Minister Ponguleti Srinivas Reddy acknowledged the widening gap between demand and supply, noting that a comprehensive Affordable Housing Policy—designed to guide the state until 2047—is currently being prepared. The policy aims to address urban needs in a socially inclusive, environmentally responsible, technology-driven and financially viable manner. It focuses on three areas:

Core urban regions, emphasising slum redevelopment and mixed and rental housing

Peri-urban regions, prioritising satellite and greenfield townships, including walk-to-work concepts

Other regions, covering small and medium townships, rental and worker housing, logistics hubs and emerging economic corridors

Housing Department Secretary V. P. Gautham said house-to-house surveys reveal an unmet urban demand exceeding 29 lakh homes. He noted that a considerable proportion of households have purchasing power, but supply remains inadequate.

PSN Rao, Dean and Professor of Housing at the School of Planning and Architecture, said the real estate sector largely caters to upper and middle-income groups. He urged developers to begin constructing smaller units, including one-room homes, to remain relevant in a shifting market.

CREDAI National president-elect G. Ram Reddy said the existing definition of affordable housing—set at Rs 4.5 million eight years ago—requires revision. He stressed the need for government-provided land under PPP models, enabling developers to build affordable units while ensuring viable business models.

Nanda Kishore, MD of Ramky Estates and Farms, suggested that Telangana adopt Mumbai’s slum redevelopment model, which developers may find attractive. He highlighted the need for government provision of land for transit camps to temporarily house residents during redevelopment.

Other panellists included Vasudevan Sureshan, former CMD of HUDCO; Abhijit Shankar Ray, senior urban specialist at the World Bank; and Ajithesh Korupolu, founder of ASBL. The discussion, moderated by Preetham Mehra, also explored ways to reduce construction costs.

The Housing Secretary emphasised the necessity of willing developers and builders, along with support from banks and housing finance companies, while civil society must help articulate community needs.