New Delhi, Dec. 29 -- Affordable housing is rapidly vanishing from India's major cities as real estate developers increasingly shift focus toward premium and luxury projects, forcing lenders to rethink growth strategies in the home loan market, said a report based on Antique Stock Broking's BFSI Conference 2025.

Housing finance experts and lenders speaking at the conference said developers are no longer willing to build homes priced below Rs 50 lakh, citing high land costs, thinner margins and reduced policy incentives under the revamped Pradhan Mantri Awas Yojana (PMAY) framework.

"Banks are not inherently set up to cater to the micro-level assessment required for affordable housing. They are expected to enter via co-lending partnershi...