'Buyers struggling with EMIs': Hiranandani warns affordable housing sales down 20%
'We are working with the Reserve Bank Governor to reduce interest rates and EMIs,' says Hiranandani
- Oct 14, 2025,
- Updated Oct 14, 2025 5:07 PM IST
Real estate tycoon Niranjan Hiranandani has said that India's affordable housing market is showing signs of stress, with sales in the segment falling sharply as buyers struggle to keep up with loan repayments.
Speaking to ANI's Smita Prakash in a podcast conversation, the Hiranandani Group co-founder said that despite India's strong overall growth, the housing sector's most price-sensitive segment is witnessing a worrying decline.
"So many things can be done simultaneously, but it just doesn't happen. We have to go still faster. What happens is when you have a growth of 7.2%, which is the fastest in the world, so many things are happening, but so many things are still not happening. We need to do much more in terms of it, and we also need to accommodate the poorest of poor," he said.
Hiranandani revealed that while his own industry has continued to grow, affordable housing sales have dropped significantly. "For instance, in our line, let me put to you the negative. While my growth in the industry last year was 10%, this year will be 12%. Affordable housing numbers have actually fallen by 20% in the last 18 months. And reason is that in that segment - those people who have made money want to aspire for a better house, but there are a lot of people at the threshold who are not able to pay the EMIs," he said.
The veteran developer said that the sector is now working with policymakers to ease the financial pressure on low-income buyers. "We are now working with the PMAY (Pradhan Mantri Awas Yojana) scheme. We are working with the Reserve Bank Governor to reduce interest rates and EMIs. We want certain benefits to be given in that segment by the state governments...reducing the stamp duty and other things. So we are working on all this faster," he added.
Hiranandani's remarks come amid a slowdown in the broader residential real estate market. According to the 'Real Insight Residential' report by PropTiger.com, home sales across India's top eight urban markets fell 14% year-on-year in the April–June 2025 quarter as affordability concerns and cautious sentiment weighed on buyers.
The report found that the Mumbai Metropolitan Region (MMR) and Pune recorded the steepest declines — 32% and 27% respectively — while Ahmedabad, Delhi NCR, and Hyderabad also saw drops. Only Bengaluru, Chennai, and Kolkata registered growth in year-on-year sales.
Experts attribute the fall largely to cost pressures in the budget and mid-income segments. PropTiger's Head of Sales Sridhar Srinivasan described the dip as a "recalibration, not a retreat." He said affordability pressures in the budget and mid-income segments have created short-term caution among buyers, though demand fundamentals remain intact.
Real estate tycoon Niranjan Hiranandani has said that India's affordable housing market is showing signs of stress, with sales in the segment falling sharply as buyers struggle to keep up with loan repayments.
Speaking to ANI's Smita Prakash in a podcast conversation, the Hiranandani Group co-founder said that despite India's strong overall growth, the housing sector's most price-sensitive segment is witnessing a worrying decline.
"So many things can be done simultaneously, but it just doesn't happen. We have to go still faster. What happens is when you have a growth of 7.2%, which is the fastest in the world, so many things are happening, but so many things are still not happening. We need to do much more in terms of it, and we also need to accommodate the poorest of poor," he said.
Hiranandani revealed that while his own industry has continued to grow, affordable housing sales have dropped significantly. "For instance, in our line, let me put to you the negative. While my growth in the industry last year was 10%, this year will be 12%. Affordable housing numbers have actually fallen by 20% in the last 18 months. And reason is that in that segment - those people who have made money want to aspire for a better house, but there are a lot of people at the threshold who are not able to pay the EMIs," he said.
The veteran developer said that the sector is now working with policymakers to ease the financial pressure on low-income buyers. "We are now working with the PMAY (Pradhan Mantri Awas Yojana) scheme. We are working with the Reserve Bank Governor to reduce interest rates and EMIs. We want certain benefits to be given in that segment by the state governments...reducing the stamp duty and other things. So we are working on all this faster," he added.
Hiranandani's remarks come amid a slowdown in the broader residential real estate market. According to the 'Real Insight Residential' report by PropTiger.com, home sales across India's top eight urban markets fell 14% year-on-year in the April–June 2025 quarter as affordability concerns and cautious sentiment weighed on buyers.
The report found that the Mumbai Metropolitan Region (MMR) and Pune recorded the steepest declines — 32% and 27% respectively — while Ahmedabad, Delhi NCR, and Hyderabad also saw drops. Only Bengaluru, Chennai, and Kolkata registered growth in year-on-year sales.
Experts attribute the fall largely to cost pressures in the budget and mid-income segments. PropTiger's Head of Sales Sridhar Srinivasan described the dip as a "recalibration, not a retreat." He said affordability pressures in the budget and mid-income segments have created short-term caution among buyers, though demand fundamentals remain intact.