Budget 2026: CREDAI calls for higher affordable housing cap, tax relief for real estate developers
Real estate industry body, the Confederation of Real Estate Developers’ Associations of India, has urged the government to revisit the definition of affordable housing and extend tax incentives to developers in the Union Budget 2026. It said the existing price cap of ₹45 lakh is no longer realistic and should either be scrapped or raised to ₹90 lakh. The association also called for tax relief for real estate companies undertaking affordable housing projects to boost supply and viability.
“We have been demanding a change in the definition of affordable housing. The input cost has increased since 2017 when the ₹45 lakh cap was introduced,” CREDAI National president Shekhar Patel told reporters at the national conclave on December 19-20 being held in the national capital.
The real estate body that represents 15,000 developers, sought an increase in the ₹45-lakh price cap under the definition of affordable housing. “The price cap of ₹45 lakh for affordable homes should be either scrapped or increased to ₹90 lakh,” said Patel.
He said the association is hopeful for some positive announcements in the Budget 2026 to augment the supply of affordable homes.
CREDAI National Secretary Gaurav Gupta said consumers would benefit if the cap is enhanced, as affordable homes attract a GST of just 1 per cent. To further boost the supply of affordable housing, he called for a reduction in GST on developers’ works contracts to 12 per cent from 18 per cent, arguing that the move would help lower apartment prices.
Also Read: Credai pushes for land reforms, digital registry, and land banks to drive housing growth
“The government should also consider providing some tax incentives to real estate companies developing affordable housing projects,” Gupta said, adding that the government had provided incentives for affordable housing in the past.
The CREDAI president highlighted that the RERA law has brought transparency in the real estate sector, which is growing at a compounded annual growth rate of 10-12 per cent.
Also Read: India’s real estate market to touch $5–10 trn by 2047; Housing sales may double, REIT share seen at 50%: Credai-Colliers
On green initiatives undertaken by Credai
Patel also said that CREDAI has set a target to achieve net-zero carbon emissions by 2047 and is encouraging its members to develop green buildings amid growing concerns over rising urban population.
“We are also doing afforestation on 9,000 acres in Nashik and 150 acres in Gurugram,” Patel said.
G Ram Reddy, president-elect, Credai said that the Hyderabad chapter has spent around ₹3 crore for the afforestation initiative.
The industry body has approached all states to provide land parcels for afforestation.
