The Confederation of Real Estate Developers’ Associations of India (CREDAI) has criticised the Union Budget 2026-27 for failing to provide meaningful measures for the affordable housing segment, even as it praised the government’s continued focus on infrastructure expansion.
CREDAI National President Shekhar Patel said the association was “deeply disappointed that the Budget offers nothing concrete for affordable housing.” He warned that without a revision to the outdated 2017 affordability definition, the category’s share of total housing supply could fall from 18 percent to nearly 12 percent.
Patel emphasised that affordable housing should be treated as “economic infrastructure” due to its role in driving employment, consumption, and social stability. Prior to the budget, CREDAI had urged the government to raise the price cap from ₹45 lakh to ₹90 lakh, enhance home loan interest deduction limits, and introduce a National Rental Housing Mission none of which were addressed.
Industry data from ANAROCK shows the segment’s sales share has dropped from over 38 percent in 2019 to 18 percent in 2025, reflecting a deepening supply crunch driven by rising construction and land costs. Patel cautioned that continued weakness in supply could lead to higher rentals, longer commutes, and the growth of informal housing.
