'Bottom of the pyramid is not growing': Niranjan Hiranandani sounds alarm on affordable housing
In my 40-plus years of experience, this is the first time I have seen the bottom of the pyramid not growing and instead declining. A 20% fall is significant, says Hiranandani
- Jun 7, 2026,
- Updated Jun 7, 2026 9:04 AM IST
Affordable housing has emerged as the biggest concern in India's property market, with Hiranandani Group Co-Founder and Managing Director Niranjan Hiranandani saying the segment has shrunk by 20% over the past two years despite overall strength in real estate demand.
Speaking on The Neha Nagar Show, Hiranandani said the broader housing market remains on a growth trajectory and cannot be compared with the 2008 global financial crisis.
"I've been in real estate for 45 years, and real estate is a cyclical business. It goes up and down, just like any other industry. However, because of inflation, if you look at the last 30 years, while there have been cycles, the overall curve has always been upward," he said.
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Hiranandani attributed the post-Covid housing boom to changing consumer behaviour as homes became central to work, education and daily life. Demand, he said, grew at a compound annual rate of 10-15% for around three years after the pandemic, while retail home loans expanded by about 15%.
But affordable housing has moved in the opposite direction.
"Affordable housing has declined by 20% over the last 24 months. In my 40-plus years of experience, this is the first time I have seen the bottom of the pyramid not growing and instead declining. A 20% fall is significant," he said.
Calling it a matter of concern, Hiranandani said affordable housing should have expanded but has failed to do so despite efforts by both the government and the private sector.
"This segment has been and will remain problematic unless specific interventions are made. So yes, there is a slowdown, but it is largely concentrated in the affordable housing segment. Other segments have not seen such declines. Some areas have weakened, but overall the market has continued to grow," he said.
Responding to comparisons with 2008, Hiranandani said the current situation is fundamentally different because India's economy remains among the world's fastest-growing.
"The current situation is not comparable. India's growth over the last three years has been unique. We are the fastest-growing major economy in the world. So you cannot compare today's situation with 2008," he said.
While he expressed confidence in the broader real estate market, Hiranandani said affordable housing remains a weak spot that will require targeted policy intervention.
Affordable housing has emerged as the biggest concern in India's property market, with Hiranandani Group Co-Founder and Managing Director Niranjan Hiranandani saying the segment has shrunk by 20% over the past two years despite overall strength in real estate demand.
Speaking on The Neha Nagar Show, Hiranandani said the broader housing market remains on a growth trajectory and cannot be compared with the 2008 global financial crisis.
"I've been in real estate for 45 years, and real estate is a cyclical business. It goes up and down, just like any other industry. However, because of inflation, if you look at the last 30 years, while there have been cycles, the overall curve has always been upward," he said.
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Hiranandani attributed the post-Covid housing boom to changing consumer behaviour as homes became central to work, education and daily life. Demand, he said, grew at a compound annual rate of 10-15% for around three years after the pandemic, while retail home loans expanded by about 15%.
But affordable housing has moved in the opposite direction.
"Affordable housing has declined by 20% over the last 24 months. In my 40-plus years of experience, this is the first time I have seen the bottom of the pyramid not growing and instead declining. A 20% fall is significant," he said.
Calling it a matter of concern, Hiranandani said affordable housing should have expanded but has failed to do so despite efforts by both the government and the private sector.
"This segment has been and will remain problematic unless specific interventions are made. So yes, there is a slowdown, but it is largely concentrated in the affordable housing segment. Other segments have not seen such declines. Some areas have weakened, but overall the market has continued to grow," he said.
Responding to comparisons with 2008, Hiranandani said the current situation is fundamentally different because India's economy remains among the world's fastest-growing.
"The current situation is not comparable. India's growth over the last three years has been unique. We are the fastest-growing major economy in the world. So you cannot compare today's situation with 2008," he said.
While he expressed confidence in the broader real estate market, Hiranandani said affordable housing remains a weak spot that will require targeted policy intervention.