State Bank of India (SBI) has highlighted a major concern in India’s housing market, stating that homes priced around ₹45 lakh can no longer be considered truly affordable in many cities. With rising land prices, increasing construction costs, and rapid urban development, the cost of buying a home has gone up significantly over the past few years.
According to SBI, the current affordable housing limit of ₹45 lakh does not match present market realities, especially in metro cities and fast-growing urban areas. The bank believes that revising this limit could provide major relief to middle-class homebuyers who are struggling to purchase homes within the existing price range.
If the government increases the affordable housing threshold, buyers may become eligible for additional benefits on home loans. These could include lower interest rates, tax advantages, and easier loan approvals under affordable housing schemes. First-time homebuyers are expected to benefit the most from such a move.
Real estate experts also believe that increasing the affordable housing limit could boost demand in the property market. Developers may focus more on mid-range housing projects, while banks could see stronger growth in home loan applications. The move may also encourage more families to invest in property despite rising prices.
SBI’s statement comes at a time when residential property prices are steadily increasing across India. In many cities, finding a quality home within ₹45 lakh has become difficult due to higher input costs and infrastructure expansion. Industry experts say that updating the affordable housing definition according to current market conditions is necessary to support both buyers and the real estate sector.
If policymakers respond positively to SBI’s recommendation, it could bring significant relief to millions of aspiring homeowners looking for affordable financing and better housing opportunities.
Source: Times Now Hindi
