Realtors' apex body CREDAI on Friday, December 19, demanded that the government should, in the upcoming Budget, provide tax incentives to developers for building affordable housing projects to cater to rising demand.
CREDAI, which represents more than 15,000 developers, also sought an increase in the Rs. 45-lakh price cap under the definition of affordable housing.
"We have been demanding a change in the definition of affordable housing. The input cost has increased since 2017 when the Rs. 45 lakh cap was introduced," CREDAI National President Shekhar Patel told reporters here.
The association is organising a national conclave on December 19-20 in the national capital.
In the definition of affordable housing, Patel said, the price cap of Rs. 45 lakhs should be either scrapped or increased to Rs. 90 lakh.
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 the consumers will benefit if the cap is enhanced, as the GST on affordable homes is only one per cent.
To boost the supply of affordable housing, he demanded that the GST paid by developers on work contracts should be reduced to 12 per cent from 18 per cent, as this would bring down the prices of apartments.
"The government should also consider providing some tax incentives to real estate companies developing affordable housing projects," Gupta said, adding that the government had in past provided incentives for such projects.
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.
Patel also noted that the CREDAI is encouraging its members to build green buildings amid growing concern of population in the cities.
The association has set a target to become net zero in carbon emissions by 2047.
"We are also doing afforestation on 9,000 acres in Nashik and 150 acres in Gurugram," the CREDAI president said.
The industry body has approached all states to provide land parcels for afforestation.
On housing sales and prices, Patel said the real estate market has been performing well post-COVID, and the trend is likely to continue in the coming years.
The Confederation of Real Estate Developers' Associations of India (CREDAI) was established in 1999.
