India’s Commerce and Industry Minister Piyush Goyal has claimed that New Delhi is in “deep negotiations” with Canberra on a proposal to construct one million homes in Australia, a project he has valued at USD 500 billion.
According to local Indian media, speaking at an industry gathering in Mumbai, Goyal framed the plan as both a trade and workforce opportunity, hinting that Indian workers could be trained in Australia’s building standards before contributing to the massive housing rollout.
“I am in deep negotiation with my counterpart in Australia to create 1 million homes. A million homes in Australia would be at least a USD 500 billion opportunity.”
While the minister did not disclose details such as the location of the planned homes, Canberra’s financial role, or India’s precise stake in the project, he stressed that the scale of the opportunity demanded global partnerships.
Minister Goyal said he had already approached the United Arab Emirates, a significant investor in Indian real estate, to provide funding.
“I talked to Thani [bin Ahmed Al Zeyoudi, UAE Trade Minister] to see if we can do a partnership to help us fund this massive opportunity.”
The announcement comes against the backdrop of Australia’s deepening housing affordability crisis.
Data from the Australian Bureau of Statistics shows that 15,796 new dwellings were approved in July, well below the 20,000 per month benchmark required to meet the Albanese government’s pledge of 1.2 million new homes by 2029.
Approvals for apartments and medium-to-high-density housing fell sharply by 22.3 per cent in July, even as private sector house approvals inched up 1.1 per cent. Nationally, house prices have continued to rise, climbing 5.3 per cent over the past year, with the average Australian home now priced at $835,000.
Master Builders Australia has warned that the National Housing Accord is falling further behind schedule, with its latest forecasts showing a deepening shortfall in new home construction.
The report reveals that 180,500 homes are expected to be started in 2024–25, nearly 60,000 short of the Accord’s annual target of 240,000. Over the full five-year period, the shortfall has now widened to 180,200 homes compared with the 160,000 projected in April.
The organisation says rising costs, falling productivity, lengthy build times and workforce shortages are preventing builders from keeping pace with demand, despite strong willingness from the industry to deliver.
As Master Builders CEO Denita Wawn said in a statement: “Australian builders are keen to get on with the job, but under current conditions, the Accord’s 1.2 million home goal looks less achievable every day.”
“Without urgent action to fix productivity, approvals, costs and workforce shortages, the target will be missed.”
Minister Goyal’s remarks also reflect India’s push to expand trade and investment partnerships at a time when it faces external challenges.
The United States has recently imposed 50 per cent tariffs on Indian steel and aluminium, prompting New Delhi to seek fresh markets for its goods. Australia, a key partner in the Indo-Pacific, has publicly backed India in its trade tensions with Washington.
Both countries are already negotiating a free trade agreement, with Goyal indicating that India is also closing in on deals with Oman, New Zealand and the European Union by the end of the year. Emphasising that “countries around the world are looking up to India for tie-ups,” Minister Goyal urged the domestic industry to seize these opportunities.
“If we miss out, we will have only ourselves to blame”
Despite the headline-grabbing figure of one million homes, major questions remain unanswered. Neither the Australian government nor local industry stakeholders have confirmed the negotiations, and experts note that Australia’s building sector is already grappling with labour shortages, supply chain issues, and high borrowing costs.
For now, Goyal’s comments place the proposal at the intersection of India’s ambitions to export skilled labour, Australia’s urgent need for new housing, and the UAE’s appetite for global investment.
If realised, it would mark one of the largest international housing collaborations in recent history, but whether the plan moves beyond the negotiation stage remains to be seen.
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