NITI Aayog's Rajiv Gauba Calls for Sweeping Land Policy Reforms to Unlock Affordable Housing Across India

In a significant policy-level statement, NITI Aayog member Rajiv Gauba has reportedly called for comprehensive reforms in India's land policies, arguing that structural changes in how land is acquired, converted, and regulated could dramatically improve housing affordability across the country's rapidly urbanising cities.

According to reports, Gauba emphasised that land continues to be one of the most critical cost components in residential development, and that rationalising land-related regulations could help lower overall project costs while simultaneously improving supply. He reportedly stated that reforms spanning land acquisition processes, land-use conversion norms, and project approval mechanisms could play a transformative role in making homes more accessible — particularly for urban populations. The government has already been prioritising digitisation of land records as part of its broader reform agenda.

Why Land Costs Remain a Major Barrier

Land prices reportedly account for a substantial share of total housing costs, especially in metropolitan areas where limited availability and cumbersome regulatory frameworks constrain supply. Industry analysts have long pointed to several interconnected factors that continue to inflate housing prices — including high land acquisition costs, prolonged approval timelines, restrictive zoning regulations, fragmented land records, and delays in land-use conversion.

Gauba reportedly noted that addressing these systemic bottlenecks could enhance transparency, compress project timelines, and encourage greater developer participation in affordable housing. Experts have also highlighted how affordable homes in India are becoming increasingly unaffordable due to precisely these structural challenges.

Key Structural Reforms on the Table

Reports suggest that the emphasis from NITI Aayog has been on long-term systemic changes rather than short-term interventions. Several reform areas have been identified as having the potential to meaningfully impact housing costs and urban development outcomes.

On the digitisation front, several states have already initiated reforms. Maharashtra has been undertaking digitisation of urban land records in a landmark initiative, while Chandigarh recently launched its 'Naksha' urban land digitisation pilot. At the central level, India is also set to replace its 117-year-old Registration Act with a modern, tech-driven property law framework. Experts believe that the digitisation of land records will significantly boost real estate investments by reducing disputes and enhancing market confidence.

Streamlining these areas could reportedly lower development costs significantly and translate into more competitively priced housing units across income segments.

Urbanisation Driving Unprecedented Housing Demand

India's rapid urbanisation is expected to continue pushing demand for residential units across all income brackets. However, persistent supply constraints and elevated land prices continue to place homeownership beyond the reach of many middle-income and lower-income households. Gauba reportedly indicated that land policy reform is central to bridging this growing gap and ensuring that housing supply keeps pace with the scale of urban growth.

The government has already taken steps in this direction through programmes such as PMAY Urban 2.0 with its INR 10 lakh crore allocation for affordable housing. State-level interventions have also gained momentum, with Maharashtra launching its housing policy to build 35 lakh affordable homes by 2030.

Broader Policy Context and Industry Impact

Gauba's remarks reportedly come amid ongoing national discussions on urban planning, infrastructure expansion, and housing affordability. Policymakers across the country have been exploring measures to improve ease of doing business in real estate, encourage private sector investment in housing, strengthen urban governance frameworks, and enhance affordability without creating market distortions. Industry bodies such as CREDAI have been seeking faster urban planning approvals to align with ambitious economic growth targets.

As a senior member of NITI Aayog, Gauba's comments are seen as reflecting the think tank's broader push for structural reforms aimed at improving urban housing outcomes. At the state level, Rajasthan's strategic land reforms have already demonstrated how such policy changes can unlock economic potential.

Industry experts have noted that meaningful land reforms could not only bring down home prices but also stimulate construction activity, generate employment, and support India's long-term economic growth. Several government initiatives are expected to boost the real estate sector in the coming years. Data also indicates that India's top cities saw a 33% jump in housing completions in FY25, signalling that policy-driven recovery is already underway.

For homebuyers navigating the current market, understanding how to choose the right affordable home remains essential while these systemic changes take shape.

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