CREDAI Voices Strong Disappointment Over Union Budget 2026-27's Affordable Housing Oversight
The Confederation of Real Estate Developers' Associations of India (CREDAI), the apex body representing real estate developers, on Sunday expressed significant disappointment regarding the Union Budget 2026-27. The association criticized the budget for failing to introduce any concrete measures aimed at boosting demand and supply within the affordable housing segment, which it views as a critical economic infrastructure component.
Warning of Shrinking Affordable Housing Supply Without Policy Support
CREDAI, which represents approximately 15,000 real estate developers across the country, issued a stark warning that the share of affordable housing in new home launches could decline further in the absence of adequate policy support. The association highlighted that without immediate intervention, this segment's contribution to total housing supply might see a substantial reduction, posing serious challenges for India's urban growth and housing accessibility.
CREDAI National President Shekhar Patel's Critical Assessment
Commenting on the budget, CREDAI National President Shekhar Patel stated that the industry body was "deeply disappointed that the Budget offers nothing concrete for affordable housing." Patel emphasized that with the current, outdated definition of affordable housing still in place, the segment's share could potentially fall from 18% to nearly 12% of the total housing supply. He described this trend as a serious warning sign for India's lower middle class and middle class, underscoring that affordable housing is not merely a welfare scheme but essential economic infrastructure.
Patel elaborated, "CREDAI believes that affordable housing is a major driver of employment, consumption, and social stability. Rising construction costs and land prices, without matching policy support, are discouraging developers from entering the affordable housing space." He further warned that if affordable housing supply continues to weaken, the consequences could include higher rentals, longer commutes, and the growth of informal housing, exacerbating urban challenges.
Urgent Call for Policy Attention and Infrastructure Focus
In response to these concerns, CREDAI urged the government to provide urgent policy attention to the affordable housing segment to ensure inclusive and sustainable urban growth. The association stressed the need for revised definitions, incentives, and support mechanisms to revitalize this critical sector and address the growing housing needs of the population.
Despite its criticisms, CREDAI acknowledged and welcomed the government's continued focus on infrastructure creation in the budget, describing it as a major positive for the real estate sector. The association noted that investments in highways, metro projects, logistics corridors, railways, and urban infrastructure are expected to improve connectivity, unlock new growth corridors, and support long-term urban development. However, it reiterated that without parallel support for affordable housing, these infrastructure benefits might not fully translate into equitable urban progress.
