Budget 2026: CREDAI urges increased affordable housing limits and tax breaks for real estate developers
By Bricksnwall | 2025-12-20
With the Union Budget for 2026 on the
horizon, CREDAI is pushing for a substantial boost to the affordable housing
limit. They're proposing a jump from the current ₹45 lakh to ₹90 lakh.
The Confederation of Real Estate Developers'
Associations of India, a key player in the real estate sector, is pushing the
government to reconsider its definition of affordable housing. They're also
asking for tax breaks for developers in the upcoming Union Budget for 2026. The
current price limit of ₹45 lakh, they argue, is outdated. They suggest either
eliminating it or increasing it to ₹90 lakh. Furthermore, the association is
advocating for tax relief for real estate firms involved in affordable housing
projects, hoping to stimulate both supply and the financial feasibility of such
ventures.
We've been calling for a redefinition of
affordable housing. The cost of inputs has risen since the ₹45 lakh limit was
established in 2017," CREDAI National president Shekhar Patel explained to
reporters during the national colloquium in the capital on December 19-20.
The real estate association, representing
15,000 developers, is pushing for a revision of the ₹45-lakh price ceiling that
currently defines affordable housing. Patel stated, "The ₹45 lakh price
cap for affordable homes needs to be either eliminated or raised to ₹90
lakh."
He expressed the association's optimism for
favorable developments in the 2026 Budget, aimed at boosting the availability
of affordable housing.
CREDAI National Secretary Gaurav Gupta
believes consumers would gain if the cap were raised, given that affordable
homes currently incur a GST of only 1 percent. To stimulate the availability of
affordable housing even more, he advocated for a reduction in the GST on
developers' works contracts, from 18 percent to 12 percent. Gupta contended
that this change would ultimately lead to lower apartment prices.
Gupta suggested that the government might
also want to think about offering tax breaks to real estate firms working on
affordable housing. He pointed out that the government had done this before.
The CREDAI president also noted that the RERA
law has made the real estate sector more transparent. This sector is currently
expanding at a rate of 10-12 percent per year.
Regarding green projects, Patel noted that
CREDAI has committed to reaching net-zero carbon emissions by 2047. The
organization is also pushing its members to construct green buildings, a
response to the increasing worries about the expanding urban population.
"We're also planting trees on 9,000
acres in Nashik and 150 acres in Gurugram," Patel stated.
G Ram Reddy, the president-elect of Credai,
mentioned that the Hyderabad chapter has invested approximately ₹3 crore in the
afforestation project.
Source: Hindustan Times
