A stronger focus on affordable housing, rental housing reforms and improved coordination between the Real Estate (Regulation and Development) Act (RERA) and the Insolvency and Bankruptcy Code (IBC) will be critical for India's real estate sector to achieve its projected valuation of $5.8 trillion by 2047, according to a joint report by KPMG in India and the National Real Estate Development Council (NAREDCO).
The report, titled Advancing India’s Housing and Urban Development Agenda, was released by Union Housing and Urban Affairs Minister Manohar Lal Khattar at the NAREDCO Real Estate Conclave 2026.
The report identifies affordable housing for Economically Weaker Sections (EWS) and Low-Income Groups (LIG) as a top priority, highlighting challenges such as rising land prices, regulatory delays, fragmented approval processes and limited access to financing. It recommends expanding land availability, increasing permissible Floor Area Ratio (FAR), introducing single-window clearance systems, digitising land mapping, reducing development charges and offering targeted tax incentives to improve project viability.
To address the growing demand for rental accommodation, the report proposes formalising rental housing as a structured asset class through GST rationalisation, priority sector lending, conversion of vacant housing stock into rental units and the development of specialised housing models for students, migrant workers, working women and senior citizens. It also advocates wider adoption of Affordable Rental Housing frameworks and public asset monetisation to significantly increase rental supply.
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The report also calls for closer alignment between RERA and the IBC to provide stronger protection for homebuyers in financially stressed projects. Key recommendations include project-wise insolvency resolution, early-warning systems to detect financial distress, better coordination between RERA authorities and insolvency professionals and enhanced safeguards for homebuyers during insolvency proceedings. It further suggests increasing the default threshold for initiating IBC proceedings to ₹5 crore to facilitate smoother project execution.
Highlighting the progress made under RERA, the report notes that more than 1.65 lakh real estate projects and 1.16 lakh agents have been registered, while over 1.62 lakh complaints have been resolved across states and union territories. It recommends greater regulatory consistency, wider adoption of technology-driven monitoring systems, faster enforcement of orders and increased awareness in Tier-II and Tier-III cities to improve transparency, accountability and sustainable growth in India's real estate sector.
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