New Delhi: The Confederation of Real Estate Developers’ Associations of India (CREDAI) has expressed deep disappointment over the Union Budget 2026-27, stating it offered “nothing concrete” on affordable housing despite repeated pre-Budget pleas. In a strong reaction post finance minister Nirmala Sitharaman’s presentation, CREDAI national president Shekhar Patel highlighted the sector’s unmet demands for redefining affordable housing caps and launching a National Rental Housing Mission amid rising urbanisation pressures.
CREDAI had urged hiking the stagnant ₹45 lakh price cap — unchanged since 2017 — to ₹90 lakh, emphasising it no longer reflects escalated land and construction costs in tier-1 and tier-2 cities. “Affordable housing remains critical for employment, urban development, and Viksit Bharat, yet the
Budget missed structural reforms like tax incentives for developers and GST rationalisation on works contracts from 18% to 12%,” Patel said. The body also sought raising home loan interest deductions to ₹5 lakh from ₹2 lakh and a dedicated Credit Guarantee Scheme for low-income buyers lacking documentation.
While the Budget allocated funds to PMAY Urban 2.0 and infrastructure capex at ₹12.2 lakh crore, CREDAI flagged underutilisation in schemes like Jal Jeevan Mission as symptomatic of broader gaps. “Without revising definitions or incentives, pent-up demand stays locked, developers shift to premium segments, and homebuyers lose access,” a CREDAI statement noted, warning of slum proliferation without rental policy shifts. The apex body proposed tenant tax benefits and institutional funding to formalise rentals, curb informal settlements, and aid migrant mobility—measures absent in the fiscal blueprint.
Industry voices echoed frustration: NAREDCO’s Niranjan Hiranandani called it a “missed opportunity” for Housing for All, while economists like Jean Drèze linked it to consumption slumps hurting realty. CREDAI vowed to engage stakeholders for mid-year corrections, stressing policy stability for supply revival.