The Confederation of Real Estate Developers' Associations of India (CREDAI) has made a significant pre-budget appeal to the government. The apex real estate body is seeking a substantial revision in the price ceiling for homes classified under the affordable housing segment.
Key Demand: A Long-Overdue Revision
In a major push ahead of the upcoming Union Budget, CREDAI has formally requested that the price cap for affordable housing be increased to Rs 90 lakh. This proposal marks a significant jump from the existing limits and is driven by years of market inflation and rising construction costs.
The call for revision was highlighted by G. Ram Reddy, the president-elect of CREDAI. He pointed out a critical stagnation in policy, noting that the price cap for affordable housing has remained unchanged for the past eight years. This prolonged period without adjustment has, according to the industry, rendered the current definition out of sync with economic realities, particularly in major urban centers.
The Rationale Behind the Demand
The core argument from the developers' body hinges on escalating input costs and the need to make homeownership accessible in broader geographies. The existing price brackets, they argue, no longer reflect the true cost of developing and purchasing a home in many cities, effectively excluding a large section of the middle class from benefits and schemes tied to the "affordable" tag.
CREDAI's proposal aims to realign the definition with current market rates. An increased cap to Rs 90 lakh would potentially bring more projects and buyers under the umbrella of government incentives and subsidies designed to boost the housing sector. This move is seen as crucial for sustaining growth in the real estate market and achieving broader national housing goals.
Budget Implications and Sector Expectations
This demand sets the stage for one of the key real estate sector asks for the financial year 2025-26. The budget announcement is keenly awaited to see if the government heeds this call for a policy update. A revision in the affordable housing price definition could have wide-ranging effects:
- Stimulating Demand: More homes would qualify for lower GST rates and other benefits, making them financially attractive to buyers.
- Boosting Supply: Developers would be incentivized to launch more projects within the new, higher price bracket.
- Urban Inclusion: It could make homeownership a reality for professionals in metropolitan areas where prices have soared.
The news was reported on 19 December 2025, indicating a strategic timing for the proposal to be considered during the government's budget planning process. The real estate industry is now watching closely to see if this eight-year-old policy will finally be updated to reflect the economic landscape of 2025.
