Archive · 23 Dec 2025
India's Urban Growth to Focus on Quality Housing
India is going to have a lot more people living in cities in the next 20 years, about 200 to 250 million more.
These people want better homes, not just more homes.
They want homes that have good light, fresh air, green spaces, safety, internet, and are close to work and public transport.
The demand for these better homes is not just in big cities like Mumbai or Delhi, but also in smaller cities.
To make this happen, the government and builders need to work together to make sure the new homes are good quality and affordable.
They also need to follow rules and make sure the cities are planned well so that people have nice places to live.
India will add 200–250 million new urban residents in the next 20 years, shifting the focus from quantity to quality of housing.
Housing demands now include better light, ventilation, green spaces, safety, digital connectivity, and proximity to jobs and transit.
The next wave of housing demand is increasingly coming from Tier-2 and Tier-3 cities, not just the top eight metros.
Regulation and institutionalisation, including the Real Estate (Regulation and Development) Act (RERA), are critical to delivering quality at scale.
Transparent governance, stronger enforcement of quality and delivery standards, and better alignment between city planning authorities, developers, and financial institutions are necessary to ensure liveable neighbourhoods.
- Who
- India's growing urban population, including the middle class
- What
- A shift towards better quality housing with specific amenities and features
- When
- Over the next 20 years
- Where
- Primarily in Tier-2 and Tier-3 cities, in addition to major metros
- Why
- Due to rising aspirations, post-pandemic preferences, and the need for liveable neighbourhoods
- New Urban Residents
- 200–250 million in next 20 years
- Key Housing Demands
- Better light, ventilation, green spaces, safety, digital connectivity, proximity to jobs and transit
- Emerging Housing Demand
- Tier-2 and Tier-3 cities
- Critical Factors
- Regulation, institutionalisation, transparent governance, quality standards, alignment between city planning authorities, developers, and financial institutions
- Key Reform
- Real Estate (Regulation and Development) Act (RERA)