Focus on First-Time Buyers, Say Experts

Industry experts at the 22nd CII Realty 2026 conference have called for a shift in India's real estate priorities towards first-time homebuyers and affordable housing instead of an excessive focus on luxury projects.

Experts at the 22nd CII Realty 2026 meet called for a shift in India's real estate priorities. (Image for representational purpose only)

PROPERTY PULSE

India's real estate sector needs to move beyond its growing dependence on luxury housing and give greater attention to first-time homebuyers, industry leaders said at the 22nd CII Realty 2026 conference held in New Delhi recently.

They called for revising the affordable housing definition, improving access to home loans and introducing early-stage financing support to prevent construction projects from stalling. Ashwinder R. Singh, vice-chairman and CEO of BCD Group, said the industry could not sustain long-term growth by selling more homes to the same category of affluent buyers.

Despite rising urbanisation, a significant section of potential homebuyers continues to face affordability and financing constraints. He pointed to the widening gap between luxury and affordable housing, with premium homes accounting for nearly one-third of housing sales nationally, according to discussions at the conference.

Industry leaders stressed the need to increase housing supply for families entering the property market instead of concentrating predominantly on affluent buyers purchasing additional homes.

Affordable Housing Under Scrutiny

Boman Rustom Irani, chairman and managing director of Rustomjee Group, said the existing ₹45 lakh price ceiling for affordable housing no longer reflected market conditions. Fixed in 2017, the limit had lost relevance due to inflation and rising property prices.

He estimated that the threshold would be approximately ₹88 lakh if adjusted for inflation. Anil Saraf, Chairman of ASF Group, said the definition should also account for household income and purchasing power rather than relying solely on property prices. Classifying housing based on income groups could help government schemes reach a wider section of buyers.

Also Read: RERA Turns 10, Forum Seeks Overhaul of Buyer Protection

Easier Loans & Project Financing

Industry leaders also called for additional home-loan benefits for first-time buyers to reduce their borrowing burden. Targeted incentives based on buyer categories, they said, could improve access to homeownership. Saraf estimated that stalled housing projects require financial support of around ₹55,000 crore.

He advocated an early-intervention mechanism to provide funds when projects first encounter financial difficulties, rather than waiting until they enter insolvency proceedings or reach the National Company Law Tribunal (NCLT). Timely financial intervention, he said, could prevent projects from becoming unviable, protect homebuyers and reduce delays in delivery.

The conference highlighted the need for a broader housing strategy that supports first-time buyers while addressing the financing challenges facing developers.