NEW DELHI: Realtors’ apex body CREDAI on Sunday expressed disappointment that the Union Budget did not provide any incentives to boost demand and supply of affordable housing.
CREDAI, which represents around 15,000 real estate developers across the country, warned that the share of affordable housing in overall new-home launches would decline further.
However, the association welcomed the government’s focus on infrastructure development, which would benefit the property sector. Commenting on the Budget, CREDAI national president Shekhar Patel said the association is “deeply disappointed that the Budget offers nothing concrete for affordable housing.” With the current outdated definition of affordable housing, he said the segment’s share could decline further from 18 per cent to nearly 12 per cent of total housing supply.
Realtors’ bodies CREDAI and NAREDCO have been demanding a revision of the definition of affordable housing, raising the price cap from Rs 45 lakh to Rs 80-90 lakh. The GST on affordable housing is 1 per cent. Hence, these two associations feel that enhancing
The Centre retaining an outdated definition of affordable housing will lead to the segment’s share falling from 18% to 12% in total housing supply, says CREDAI the price cap would benefit prospective homebuyers.
CREDAI and NAREDCO had sought tax sops for developers to boost affordable housing project supply. “This is a serious warning sign for the lower middle class and middle class. CREDAI believes that affordable housing is not a welfare scheme; it is economic infrastructure. It is a major driver of employment, consumption, and social stability,” Patel said.
Rising construction costs and land prices, without corresponding policy support, are pushing developers away from this segment, he pointed out.
“If affordable housing supply continues to weaken, the consequences are clear: higher rentals, longer commutes, and growth of informal housing,” Patel said.
CREDAI urged the government to give urgent policy attention to affordable housing to ensure inclusive and sustainable urban growth.
Real estate consultant Anarock Chairman Anuj Puri said, “The absence of any direct announcement on affordable housing, particularly around definition reset or fiscal support, is a disappointment, given its importance for urban housing supply and inclusive growth.”