India needs renewed focus on affordable housing, rental housing reforms and stronger homebuyer protection to help the real estate sector reach an estimated USD 5.8 trillion by 2047, according to a joint report by KPMG in India and the National Real Estate Development Council (NAREDCO).

The report, “Advancing India’s Housing and Urban Development Agenda”, was unveiled by Union Housing and Urban Affairs Minister Manohar Lal Khattar at the NAREDCO Real Estate Conclave 2026.

Framing housing as a key pillar of the Viksit Bharat 2047 vision, the report highlights four policy priorities: affordable housing, rental housing, homebuyer protection under the RERA-Insolvency and Bankruptcy Code (IBC) framework, and stronger implementation of the Real Estate Regulatory Authority (RERA).

India’s urbanisation is expected to reach 40 per cent by 2036, with nearly half the population living in cities by 2050, driving demand for housing and infrastructure. Key challenges include limited land availability, restrictive FAR/FSI norms, lengthy approvals, costly funding for affordable housing, low rental yields and overlaps between RERA and IBC.

To increase affordable housing supply for Economically Weaker Sections (EWS) and Low-Income Groups (LIG), the report recommends expanding land availability, raising permissible FAR, streamlining approvals through single-window systems, improving access to low-cost finance and offering targeted tax incentives.

To address rising demand for rental housing, it calls for a formal ecosystem supported by institutional investment, regulatory backing and innovative financing. Recommendations include expanding Affordable Rental Housing (ARH) models, converting vacant assets into rental stock, rationalising GST and creating dedicated frameworks for students, migrant workers, working women and senior citizens.

The report also urges closer RERA-IBC alignment to protect homebuyers in stressed projects through project-wise insolvency resolution, early-warning systems, stronger coordination between RERA authorities and insolvency professionals, and enhanced safeguards during insolvency proceedings.

Since RERA’s introduction, 1.65 lakh projects and 1.16 lakh agents have been registered, while 1.62 lakh complaints have been resolved across states and union territories, the report noted.

Parveen Jain, National President, NAREDCO, said the real estate sector would be central to India’s development and called for stronger collaboration among government, industry and financial institutions to accelerate housing and infrastructure delivery.

Neeraj Bansal, Partner and Head – India Global, KPMG in India, said enhanced RERA-IBC alignment and technology-driven monitoring systems could foster transparency, accountability and project execution. Further, raising the default threshold for initiating IBC proceedings to INR5 crore could support efficient project progress.

As RERA nears a decade of implementation, the report recommends greater regulatory consistency, wider use of digital project-monitoring systems, faster enforcement of orders and increased awareness in Tier-II and Tier-III cities.

It concludes that balancing regulatory oversight with market efficiency will be essential for building an affordable, transparent and sustainable housing ecosystem that supports India’s long-term urbanisation and economic growth.