{"id":9420,"date":"2026-02-14T07:44:25","date_gmt":"2026-02-14T07:44:25","guid":{"rendered":"https:\/\/housiey.com\/blogs\/?p=9420"},"modified":"2026-02-14T07:44:25","modified_gmt":"2026-02-14T07:44:25","slug":"reforming-land-policies-can-make-housing-more-affordable-niti-aayog-member-rajiv-gauba","status":"publish","type":"post","link":"https:\/\/housiey.com\/blogs\/reforming-land-policies-can-make-housing-more-affordable-niti-aayog-member-rajiv-gauba","title":{"rendered":"Reforming Land Policies Can Make Housing More Affordable: Niti Aayog Member Rajiv Gauba"},"content":{"rendered":"<p>India\u2019s affordable housing dream cannot be achieved unless land becomes easier, cheaper, and smarter to use. This was the key message delivered by Niti Aayog member Rajiv Gauba, who highlighted how land constraints remain one of the biggest barriers in developing housing projects across the country.<\/p>\n<p>Speaking at an international conference organised by the National Housing Bank (NHB), Gauba stressed that India urgently needs comprehensive land reforms to unlock housing supply and reduce the overall cost of homes, especially for low-income and economically weaker sections.<\/p>\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_76 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/housiey.com\/blogs\/reforming-land-policies-can-make-housing-more-affordable-niti-aayog-member-rajiv-gauba\/#Land_Costs_Are_the_Biggest_Roadblock\" >Land Costs Are the Biggest Roadblock<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/housiey.com\/blogs\/reforming-land-policies-can-make-housing-more-affordable-niti-aayog-member-rajiv-gauba\/#Key_Reforms_Suggested_to_Reduce_Housing_Prices\" >Key Reforms Suggested to Reduce Housing Prices<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/housiey.com\/blogs\/reforming-land-policies-can-make-housing-more-affordable-niti-aayog-member-rajiv-gauba\/#Developers_Struggle_Due_to_Costly_Financing\" >Developers Struggle Due to Costly Financing<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/housiey.com\/blogs\/reforming-land-policies-can-make-housing-more-affordable-niti-aayog-member-rajiv-gauba\/#Nearly_1_Crore_Vacant_Houses_Raise_Bigger_Questions\" >Nearly 1 Crore Vacant Houses Raise Bigger Questions<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/housiey.com\/blogs\/reforming-land-policies-can-make-housing-more-affordable-niti-aayog-member-rajiv-gauba\/#Need_for_Stronger_Rental_Housing_and_Tenancy_Reforms\" >Need for Stronger Rental Housing and Tenancy Reforms<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/housiey.com\/blogs\/reforming-land-policies-can-make-housing-more-affordable-niti-aayog-member-rajiv-gauba\/#Additional_Incentives_Needed_for_Affordable_Housing_Viability\" >Additional Incentives Needed for Affordable Housing Viability<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/housiey.com\/blogs\/reforming-land-policies-can-make-housing-more-affordable-niti-aayog-member-rajiv-gauba\/#Niti_Aayog_Working_on_Policy_Recommendations\" >Niti Aayog Working on Policy Recommendations<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/housiey.com\/blogs\/reforming-land-policies-can-make-housing-more-affordable-niti-aayog-member-rajiv-gauba\/#Government_Targets_7_Crore_Houses_by_2029\" >Government Targets 7 Crore Houses by 2029<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/housiey.com\/blogs\/reforming-land-policies-can-make-housing-more-affordable-niti-aayog-member-rajiv-gauba\/#Policy_Support_and_GST_Cuts_to_Boost_Housing_Affordability\" >Policy Support and GST Cuts to Boost Housing Affordability<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/housiey.com\/blogs\/reforming-land-policies-can-make-housing-more-affordable-niti-aayog-member-rajiv-gauba\/#Conclusion\" >Conclusion<\/a><\/li><\/ul><\/nav><\/div>\n<h2><span class=\"ez-toc-section\" id=\"Land_Costs_Are_the_Biggest_Roadblock\"><\/span><strong>Land Costs Are the Biggest Roadblock<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Gauba pointed out that land today accounts for a massive 50% to 70% of total project costs, which is far higher than what is typically seen in other infrastructure sectors. This heavy burden makes housing expensive even before construction begins, leaving developers with limited flexibility to reduce final home prices.<\/p>\n<p>According to him, these high land costs are directly restricting the growth of affordable housing in urban and semi-urban areas.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Key_Reforms_Suggested_to_Reduce_Housing_Prices\"><\/span><strong>Key Reforms Suggested to Reduce Housing Prices<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>To tackle this issue, Gauba proposed multiple reforms that can improve land utilisation and bring down costs. These include:<\/p>\n<ul>\n<li>Allocating at least 10% of residential land in master plans for affordable housing<\/li>\n<li>Increasing permissible Floor Area Ratio (FAR) from the current 2\u20133 to 5\u20136<\/li>\n<li>Promoting transit-oriented development, ensuring housing projects grow around metro and transport corridors<\/li>\n<li>Adopting land pooling mechanisms to create large, planned housing zones without excessive land acquisition costs<\/li>\n<\/ul>\n<p>He explained that these changes can significantly reduce land-related expenses and help unlock new housing supply.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Developers_Struggle_Due_to_Costly_Financing\"><\/span><strong>Developers Struggle Due to Costly Financing<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Gauba also highlighted another major challenge, limited access to formal credit. Many developers, especially those building in affordable segments, are forced to rely on high-cost financing options.<\/p>\n<p>This increases project risk and reduces profitability, making affordable housing less attractive for private players. He noted that profit margins in the Economically Weaker Section (EWS) and Low-Income Group (LIG) segments are already low, which discourages private investment further.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Nearly_1_Crore_Vacant_Houses_Raise_Bigger_Questions\"><\/span><strong>Nearly 1 Crore Vacant Houses Raise Bigger Questions<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>In a striking observation, Gauba mentioned that close to 1 crore houses are lying vacant in India, indicating that the problem is not only about construction, but also about better planning and utilisation of existing housing stock.<\/p>\n<p>He stressed that India must strengthen its <strong><a href=\"https:\/\/housiey.com\/blogs\/budget-2026-and-real-estate-building-foundations-for-indias-next-growth-cycle\">rental housing<\/a><\/strong> ecosystem to ensure vacant homes can become usable housing options.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Need_for_Stronger_Rental_Housing_and_Tenancy_Reforms\"><\/span><strong>Need for Stronger Rental Housing and Tenancy Reforms<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>To improve housing accessibility, Gauba recommended reforms such as:<\/p>\n<ul>\n<li>Updating and reforming tenancy laws<\/li>\n<li>Rationalising municipal charges<\/li>\n<li>Promoting diverse rental housing models<\/li>\n<li>Creating anchor funds and dedicated financing mechanisms to attract private investment into rental housing<\/li>\n<\/ul>\n<p>These measures, he said, can help make rental housing more structured, stable, and reliable for both tenants and investors.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Additional_Incentives_Needed_for_Affordable_Housing_Viability\"><\/span><strong>Additional Incentives Needed for Affordable Housing Viability<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Gauba further suggested that improving the financial feasibility of affordable housing projects may require additional support measures, such as:<\/p>\n<ul>\n<li>Profit exemptions for affordable housing projects<\/li>\n<li>Increasing credit guarantee limits under the Credit Risk Guarantee Fund Trust for Low-Income Housing<\/li>\n<li>Waiving profit fees for land allocated to affordable housing<\/li>\n<li>Reducing or exempting stamp duty for affordable housing units<\/li>\n<\/ul>\n<p>Such incentives could encourage private builders to enter the affordable segment more actively.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Niti_Aayog_Working_on_Policy_Recommendations\"><\/span><strong>Niti Aayog Working on Policy Recommendations<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Gauba revealed that Niti Aayog has recently worked closely with the Ministry of Housing and Urban Affairs, the Department of Financial Services, and other stakeholders to create a set of policy recommendations based on global best practices and evidence-based analysis.<\/p>\n<p>He urged the relevant government departments to consider implementing these reforms to accelerate affordable housing development across India.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Government_Targets_7_Crore_Houses_by_2029\"><\/span><strong>Government Targets 7 Crore Houses by 2029<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>During the same event, <a href=\"https:\/\/financialservices.gov.in\/beta\/en\/secretary-1\">Department of Financial Services Secretary M Nagaraju<\/a> shared updates on the government\u2019s housing progress. He announced that the government has sanctioned 3 crore additional houses under the <strong><a href=\"https:\/\/housiey.com\/blogs\/pradhan-mantri-awas-yojana-urban-scheme-eligibility-apply-online-documents\">Pradhan Mantri Awas Yojana<\/a><\/strong> (PMAY).<\/p>\n<p>This includes:<\/p>\n<ul>\n<li><strong>2 crore houses in rural areas<\/strong><\/li>\n<li><strong>1 crore houses in urban areas<\/strong><\/li>\n<\/ul>\n<p>With this expansion, the government expects that by 2029, nearly <strong><a href=\"https:\/\/housiey.com\/blogs\/uttar-pradesh-to-roll-out-pmay-u-20-a-new-chapter-in-affordable-housing\">7 crore houses will be constructed under PMAY<\/a><\/strong>.<\/p>\n<p>So far, nearly 4 crore houses have already been built under the scheme.<\/p>\n<p>NHB Disburses \u20b960,000 Crore Under Affordable Housing Fund<\/p>\n<p>Nagaraju also stated that under the Affordable Housing Fund, the National Housing Bank has disbursed concessional refinance worth \u20b960,000 crore till December 2025.<\/p>\n<p>This funding has benefited approximately 5.85 lakh dwelling units across India, helping improve affordability and access to housing finance.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Policy_Support_and_GST_Cuts_to_Boost_Housing_Affordability\"><\/span><strong>Policy Support and GST Cuts to Boost Housing Affordability<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Nagaraju highlighted that both the Government of India and the <strong><a href=\"https:\/\/housiey.com\/blogs\/rbi-keeps-repo-rate-unchanged-at-5-5-what-it-means-for-homebuyers-and-real-estate\">Reserve Bank of India<\/a><\/strong> have supported housing growth through reforms and credit expansion.<\/p>\n<p>He pointed out that revisions in priority sector lending norms, including higher housing loan limits and broader definitions, were introduced last year to boost credit flow into underserved areas.<\/p>\n<p>Additionally, he noted that significant <strong><a href=\"https:\/\/housiey.com\/blogs\/historic-diwali-gift-for-the-nation-govt-announces-massive-gst-cuts-across-sectors\">GST rate reductions<\/a><\/strong> on key construction materials are expected to reduce construction costs and improve housing affordability.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Conclusion\"><\/span><strong>Conclusion<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><a href=\"https:\/\/en.wikipedia.org\/wiki\/Rajiv_Gauba\">Rajiv Gauba\u2019<\/a>s remarks underline a critical truth; India\u2019s housing affordability challenge is deeply linked to land costs and policy inefficiencies. While <strong><a href=\"https:\/\/housiey.com\/blogs\/apply-for-pradhan-mantri-awas-yojana-online-eligibility-process-and-benefits\">schemes like PMAY<\/a> <\/strong>have made massive progress in increasing housing supply, structural reforms in land allocation, FAR limits, financing access, and rental housing models may be the key to making homeownership realistic for millions more Indians.<\/p>\n<p>If India successfully implements these recommendations, it could unlock large-scale affordable housing development, reduce project costs, and help build more sustainable, well-planned cities.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>India\u2019s affordable housing dream cannot be achieved unless land becomes easier, cheaper, and smarter to use. This was the&hellip;<\/p>\n","protected":false},"author":5,"featured_media":9421,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[79,70],"tags":[3186,3905,3904,3903],"class_list":["post-9420","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-general","category-latest-news","tag-housing-affordability-india","tag-india-housing-policy-news","tag-land-reforms-and-real-estate","tag-rajiv-gauba-niti-aayog-statement"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v25.4 (Yoast SEO v26.2) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Reforming Land Policies Can Make Housing More Affordable - Housiey News<\/title>\n<meta name=\"description\" content=\"Land reforms, higher FAR, and better financing could cut housing costs in India. 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