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Affordable Housing in Kolkata: A Look at Government and Private Projects

Submitted by admin on August 6th, 2025

Kolkata is one of the oldest cities and culturally rich cities in India where a gradual real estate change is visible. As luxury and premium housing has gone on an increase, affordable housing has become an important area of interest to fulfill the requirements of the higher population of the city particularly, the lower and middle-income earners. Government efforts and those of private sectors are both progressing this segment with their own difficulties and opportunities attached to them.

Government Programs: Increasing the Safety Net

Pradhan Mantri Awas Yojana (PMAY-Urban) has contributed largely in the increase in affordable housing in the urban parts of West Bengal including Kolkata. Out of this overarching plan, more than 44 lakh of houses have been approved, of which a large number of are to benefit economically (weaker sections) and low-income sections (LIG). Nevertheless, its efficiency in the city has been tainted on occasions by procedural lags and political nepotism claims in disbursing the funds.

To fill in this vacuum, the West Bengal government has initiated the Banglar Bari scheme-its state led housing project targeted at kickstarting low cost houses in accelerated manner. Recently, under a 455 crore infrastructure thrust, two EWS housing projects in New Town have been opened. These will provide cheap subsidized houses to the most vulnerable citizens of Kolkata.

Besides this, there is the West Bengal Housing Board which has a range of low cost projects like township style (Kalindi Housing Estate, Sarsuna Satellite Township, etc.). Such amalgamated constructions, including EWS, LIG and MIG apartments, represent the state of affairs that has been tracking progressive housing to all regardless of their financial status.

The green housing incentives Role

With an eye towards encouraging sustainability as well as affordability, the housing authorities in Kolkata, in collaboration with the Indian Green Building Council (IGBC), have recently made available incentives including specifically the provision of an increase in the Floor Area Ratio (FAR), of up to 10%, to green-certified residential builds. This does not only make the housing sector less environmentally impactful but it also prompts developers to do more efficient and less expensive forms of constructing.

Private Sector Participation: Mid-Income Options

While private developers in Kolkata generally target mid-to-high-end buyers, some large township-style projects do include affordable and mid-segment units. For example, Kolkata West International City (KWIC) in Howrah—developed through a public-private partnership—offers flats priced between ₹20–80 lakh. Similarly, Uniworld City in New Town caters to a broad demographic with apartment units ranging from modest 2BHKs to premium offerings.

Challenges and Opportunities

Despite these efforts, several hurdles remain. Land acquisition bottlenecks, political interference, and delays in project execution affect both government and private projects. Additionally, discriminatory rental practices in some areas limit housing access for certain communities, highlighting the need for more inclusive housing policies.

However, there are positive signs. A recent 1% repo rate cut by the Reserve Bank of India has improved home loan affordability, and early 2025 has seen a revival in affordable housing demand, especially in the sub-₹50 lakh category.

Conclusion

Affordable housing in Kolkata is no longer just a policy goal—it’s a growing necessity. With coordinated efforts from both the government and private developers, and an emphasis on sustainability, the city is gradually moving towards more inclusive and accessible living spaces for all.