CREDAI has proposed 60 sq m and 90 sq m carpet-area limits for affordable homes in metros and non-metros respectively | AI Generated Representational Image
Mumbai, October 2, 2026: The Confederation of Real Estate Developers’ Associations of India (CREDAI) has urged the Centre to redefine affordable housing by removing the existing Rs 45 lakh price ceiling and instead base the definition primarily on the size of a dwelling unit. At its three-day, 24th edition of NATCON in Kolkata, CREDAI spoke about affordable housing. The apex body of real estate developers said the government is already working on a new affordable housing policy and expressed hope that the revised framework would be introduced within the next six months.CREDAI Seeks Policy ChangeCREDAI President Shekhar Patel said the organisation was in discussions with the Housing Department, Finance Department and NITI Aayog regarding the proposed policy.
“We are in touch with the government Housing Department, Finance Department, and NITI Aayog. The government is preparing the new affordable housing policy,” Patel told media persons during a media conference.
CREDAI has proposed retaining a 60 sq m carpet area limit for metropolitan cities and 90 sq m for non-metropolitan cities, while removing the Rs 45 lakh price cap.“We want that the cap of Rs 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,” he said.Challenges In Affordable HousingThe developers’ body said the existing price-based definition has become increasingly difficult to apply in a market where land prices, construction costs and other input costs vary significantly across cities.Patel said organised developers are currently unable to supply affordable homes in sufficient numbers to meet demand, citing constraints related to land, taxation and approvals.“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,” the CREDAI president said.He also pointed out that the share of affordable housing in overall residential property sales has declined.Patel said several government departments are involved in preparing the new policy and expressed optimism about an early change in the existing framework.“We are hoping for the policy changes in the next six months,” he added.The demand for changing the definition of affordable housing is not new, with CREDAI having previously raised the issue of revising the existing price-based criteria. The latest demand comes amid the industry’s concerns over the declining supply of homes falling within the existing affordable housing price bracket.Real Estate Sector Projected To Touch $1 TrillionCREDAI, in collaboration with ANAROCK Research & Advisory, also released its latest report, ‘Indian Real Estate: Growth Trajectory, Sectoral Outlook and Geopolitical Crosscurrents’.According to the report, the Indian real estate market has expanded from around $120 billion in 2017 to approximately $600 billion in 2025 and is projected to reach $1 trillion by 2030 and nearly $5.8 trillion by 2047.The value of real estate under construction has increased more than five-fold from $94 billion in 2009 to $503 billion in 2025. The sector’s contribution to India’s GDP is projected to rise from 6% in 2017 to around 13% by 2030, while employment in the sector is expected to reach 30 million by 2030.The report also highlighted sustained residential demand, with sales value across the top seven cities rising from Rs 2.35 lakh crore in FY22 to Rs 6.10 lakh crore in FY26. Quarterly residential sales have remained above Rs 1.3 lakh crore for seven consecutive quarters.“Real estate is entering a phase where technology and innovation will influence every part of the business, from how we understand customers and market projects to how we plan, build and operate them. AI, in particular, has the potential to enable better decision-making, improve efficiencies and create more responsive businesses. For the industry, the opportunity is not simply to adopt new technologies, but to use them meaningfully to build a more productive, transparent and future-ready sector,” said Patel.Also Watch:
He further said the next phase of urban growth would increasingly extend beyond traditional metropolitan centres, with Kolkata and other emerging cities having an important role as infrastructure and connectivity improve.To get details on exclusive and budget-friendly property deals in Mumbai & surrounding regions, do visit: https://budgetproperties.in/