Real Estate Body Calls for Updated Affordable Housing Rules After Budget Misses Expectations

The Confederation of Real Estate Developers’ Associations of India (CREDAI) has said that the real estate sector had high expectations from the Union Budget 2026, especially stronger support for affordable housing, but many of these hopes were not met. CREDAI’s president, Shekhar Patel, said the industry will continue engaging with the government to press for changes that reflect current market realities.

Patel highlighted that the definition of affordable housing has not changed in nine years. Currently, the policy caps the price of such homes at ₹45 lakh and limits unit sizes to 60 sq m in metro cities and 90 sq m in non-metros. Developers say this price ceiling is outdated due to rising construction costs and inflation, and is discouraging investment in affordable projects.

CREDAI argues that affordable housing in India should be defined by size rather than a fixed price cap, or that the price limits should be raised to reflect current conditions — for example to ₹65–70 lakh or more, to keep pace with inflation and city market dynamics.

In addition to redefining affordable housing, the industry body also wants a credit guarantee scheme similar to what’s available for MSMEs. Such a scheme could help lower financing risk for lenders and make housing loans easier to obtain for low and middle-income buyers.

Despite the budget not delivering major new incentives for housing, CREDAI plans to continue talks with the central government and NITI Aayog to push reforms that can make affordable homes more viable for both developers and buyers.