By Abhishek Raj
India’s ambition of achieving ‘Housing for All’ by 2030 stands as one of the most transformative socio-economic goals undertaken in recent decades. Anchored by the Pradhan Mantri Awas Yojana (PMAY), the mission aims to address the chronic housing shortage across urban and rural India. Nonetheless, as the Indian economy enters the second half of this decade, one pressing question lingers: can India deliver on their commitment to housing by 2030?
However, current estimates have revealed that the task is not yet less daunting. The projection, according to the reports filed in the sector, indicates that the country faces a deficit in affordable housing of over 30 million in the year 2030, in the event that reforms and efficiencies in the delivery chain are not taken into account. There has, however, been significant support in terms of funding.
Budget Allocation and Policy Intent
From the financial perspective, the government has always emphasised its support for the housing sector. In the Union Budget 2025-26, the Ministry of Housing and Urban Affairs received an outlay of Rs 96,777 crores, reflecting a sharp increase of 52 per cent from the revised estimates of the previous year. A substantial part of this outlay has been allocated to the PMAY, comprising the urban and rural sub-schemes of PMAY-U and PMAY-U 2.0 and PMAY-G, respectively.
Taking cognizance of the fact that the demand for housing continues to be ahead of what had been previously estimated, the government has announced an even goal of 3 crore houses, to be erected by 2028-29. What is pertinent to note is that the PMAY-U 2.0 scheme is expected to help 1 crore urban poor and middle-class families, which is being sought to be achieved through an estimated investment of Rs 10 lakh crore over five years.
Physical Progress on the Ground
Evaluating the project on the basis of sanctions and completion, PMAY has shown decisive results. As of the end of 2025, more than 118 lakh homes have been sanctioned in the PMAY-U, with close to 76 per cent of the total homes completed. In rural India, the PMAY-G has shown even more satisfactory performance, with more than 2.82 crore homes being completed against the total target of 4.95 crore.
These numbers make it abundantly clear that the mission is anything but static. However, when compared to the magnitude of urbanisation, migration, and the growth of households, the rate of progress seems to be lagging in closing the demand and supply gap by the end of the decade.
The Execution Gap: Where Progress Slips
The most immediate challenge relates to fund disbursement and utilisation. Even with the increase in allocations, the challenge of underspending has persisted. In the case of PMAY-U, the budget underutilisation position touched almost 55 per cent in FY 2024-25. The actual spending has been consistently falling since the record high in FY22, and such constraints appear to be in the execution phase and not in the availability of funds.
The supply side of the real estate sector equally holds challenges for the affordable housing sector. The affordable housing category, which to date has been a key driver for new launches, has witnessed a slump in new launches by developers. The contribution of affordable housing to new launches, which stood at over 52% back in 2018, has been reduced to 17 per cent as of 2025 for large cities.
Structural and Policy Challenges
Apart from funding and supply chain issues, issues related to implementation at the state level are also a major point of concern. There have been issues related to delays in land acquisition and lack of funding, as well as capacity issues, which have impacted the implementation of various projects in multiple states, including Bihar, Haryana, and Andhra Pradesh.
Another structural issue arises from the definition of affordability itself. The current prices that need to be restricted, say Rs 45 lakh in the case of affordable housing in the metropolitan area, do not account for the cost of the land and the construction costs, thereby adding to the issue.
Whether on the Way to 2030?
India’s housing mission is backed by robust policy intent, incremental budgetary support, and progress. Despite this, the divide between aspirations and Deliverability is considerable. Unless the inefficiencies in the utilisation of funds, the drive to encourage private developers, the alignment of affordability parameters, and the fast-paced process improvements are addressed, the aspiration to fill the housing gap by 2030 seems distant.
The vision of “Housing for All” remains strong in intent, but its timeline continues to face uncertainty. The next phase must see a decisive shift from allocation-driven optimism to execution-led delivery. Only through this transition can the nation meaningfully progress toward realising its goal of providing adequate housing for all citizens.
(The author is Founder and CEO, Jenika Ventures)
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