News: KPMG-NAREDCO: Reforms Needed for $5.8 Trillion Real Estate-20-06-2026

India’s real estate sector can reach its projected size of $5.8 trillion by 2047 only with a renewed push on affordable housing, rental housing reforms, better alignment between RERA and the IBC to protect homebuyers, and more effective implementation of RERA, according to a joint report by KPMG in India and NAREDCO.

The report, ’Advancing India’s Housing and Urban Development Agenda’, was released by Union Housing and Urban Affairs Minister Manohar Lal Khattar at the NAREDCO Real Estate Conclave 2026 in New Delhi this week.

Affordable housing

Unlocking supply for Economically Weaker Sections (EWS) and Low-Income Groups (LIG) is identified as a key priority. Rising land costs, approval delays, fragmented regulation and limited access to finance continue to hold back viable projects. The report recommends expanding land availability, higher Floor Area Ratio (FAR) for affordable projects, single-window clearances, digitised land mapping, lower development charges, low-cost financing and targeted tax incentives. It also stresses stronger last-mile infrastructure and master plans aligned with real-time urban growth.

Rental housing

The report says rental housing can be formalised as a structured asset class through GST rationalisation, inclusion under priority sector lending, conversion of vacant housing stock into rental assets, and co-living and dedicated models for students, migrant workers, working women and senior citizens. It calls for a formal ecosystem backed by institutional investment, regulation and innovative financing, with wider use of Affordable Rental Housing (ARH) models and public asset monetisation.

RERA and IBC

To protect buyers in stressed projects, the report recommends project-wise insolvency resolution, early-warning systems for financial stress, closer coordination between RERA authorities and insolvency professionals, and stronger safeguards during insolvency proceedings. It notes that since RERA was introduced, more than 1.65 lakh projects and 1.16 lakh agents have been registered and over 1.62 lakh complaints resolved across states and union territories.

Neeraj Bansal, Partner and Head, India Global, KPMG in India, said better RERA-IBC alignment and technology-driven monitoring could improve transparency and execution, and that raising the default threshold for initiating IBC proceedings to Rs 5 crore could support project progress.

With RERA nearing a decade, the report seeks greater regulatory consistency, wider digital project monitoring, faster enforcement of orders and more awareness in Tier-II and Tier-III cities.

Parveen Jain, national president, NAREDCO, said urbanisation is projected to reach 40 per cent by 2036, with nearly half the population in cities by 2050. He called the $5.8 trillion potential an obligation and not merely an aspiration, and urged stronger collaboration among government, industry and financial institutions.