4 hrs ago
New Affordable Housing Policy Expected Within Six Months, Credai Says
The Central government is working on a new policy for affordable homes.
Credai, a group representing real estate developers, expects it within six months.
Credai wants the government to remove the ₹45 lakh price limit for these homes.
It suggests using only the size of a home to decide whether it is affordable.
The suggested limit is 60 square metres in metropolitan cities.
In other cities, the suggested limit is 90 square metres.
Credai says developers are not building enough affordable homes because of land, tax and approval problems.
It also says affordable homes make up a smaller share of residential property sales than before.
Credai says the Central government is preparing a new affordable housing policy.
The real estate body expects the policy framework within the next six months.
Credai wants the ₹45 lakh per-unit price cap removed.
It recommends retaining size limits of 60 square metres in metros and 90 square metres elsewhere.
Credai cites land, taxes, approvals and declining affordable-home sales as major constraints.
- Who
- Credai President Shekhar Patel and the Central government.
- What
- The government is preparing a new affordable housing policy, while Credai is seeking changes to the eligibility criteria.
- Where
- The announcement was made at a media conference; the policy would apply to metropolitan and other cities.
- When
- The announcement was made on Friday and published on October 2, 2026; the policy is expected within six months.
- Why
- Credai says the current price cap and constraints involving land, taxes and approvals limit the supply of affordable homes.
Credai’s Requested Changes
Existing Policy Framework
Definition of affordable housing
Credai’s Requested Changes
Credai wants the ₹45 lakh price cap removed, with eligibility based only on prescribed home sizes.
Existing Policy Framework
The article describes the existing framework as including a ₹45 lakh per-unit price cap and size criteria.
Policy development
Credai’s Requested Changes
Credai is urging policy changes and says developers need fewer constraints to supply more affordable homes.
Existing Policy Framework
The Central government is still preparing the new policy, with several departments involved in the process.
Key facts
- Expected policy timeline
- Within the next six months
- Current price cap
- ₹45 lakh per affordable housing unit
- Suggested metropolitan size limit
- 60 square metres
- Suggested non-metropolitan size limit
- 90 square metres
- Departments consulted
- Housing Department, Finance Department and NITI Aayog
- Reported supply constraints
- Land availability, taxes and approvals
- Sales trend
- Affordable homes’ share of overall residential property sales has declined
Quotes
Shekhar Patel
President of Credai, the apex body of real estate developers
“We have constraints on land, taxes, and approvals. We are working with the State governments and the Central government to resolve these constraints for the betterment of our citizens”
thehindubusinessline.com
“We want that the cap of ₹45 lakh should be removed. There should be only an area limit of 60 sq metre for metros and 90 sq metre for non-metros to be called affordable homes”
thehindubusinessline.com
Sources
Related news
CREDAI Seeks Area-Based Affordable Housing Without ₹45 Lakh Cap
Delhi Building Collapse Highlights Crisis in Affordable Small-Format Housing
Naidu Sets 2027 Deadline for 5.52 Lakh Houses
Puttaparthi Alliance Government Promises Houses and Pensions to Poor
Chandrababu Naidu Sets Deadlines for Andhra Pradesh Housing
Davanagere-Harihar Authority Plans 200-Acre Layout for Poor Families
India's CSR Spending Grows, but Poorer States Remain Underserved
NITI Aayog Workshop Advances Sustainable Development Goals Budgeting
CAFE-III Gazette Reveals EV Metric and Credit-Window Errors
