New affordable housing policy likely in 6 months; CREDAI seeks removal of ₹45 lakh price cap

The Centre is preparing a new affordable housing policy aimed at addressing constraints in the segment, the Confederation of Real Estate Developers’ Associations of India (CREDAI) said on Friday. The developers’ body expects changes to the existing framework within the next six months.

CREDAI President Shekhar Patel said the industry is in discussions with the Housing Department, Finance Department and NITI Aayog as the government works on the proposed policy.

A key demand from the real estate industry is the removal of the ₹45 lakh price cap currently used in the definition of affordable housing. CREDAI wants the government to retain only the prescribed carpet-area criteria.

“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,” Patel said.

The developers’ body argues that the price ceiling has become a constraint as property prices and development costs have risen across cities. CREDAI has also highlighted limitations involving land availability, taxes and approval processes, which it says are affecting the supply of affordable homes.

Patel said organised developers are currently unable to supply enough affordable housing units to meet the requirements of homebuyers. He added that CREDAI is working with both state and central governments to address these constraints.

The share of affordable homes in overall residential property sales has also declined, Patel said, underscoring the challenges facing the segment.

Housing construction nearly doubles in six years

The comments came alongside a report by CREDAI and property consultant Anarock on the growth trajectory of India’s real estate sector. The report said the total value of housing projects under construction increased to $430 billion in 2025, from $235 billion in 2019 and about $45 billion in 2009.

Across residential, office, retail and warehousing, the value of real estate under construction rose from $94 billion in 2009 to $503 billion in 2025, representing more than a five-fold increase.

Residential real estate accounted for 85% of this value in 2025, compared with 48% in 2009, reflecting the expansion of housing demand.

Anarock Chairman Anuj Puri said residential sales value remained above ₹1.3 lakh crore for seven consecutive quarters, while Grade A office absorption remained firm in the first half of 2026. Global Capability Centres accounted for around 45% of total office leasing during the period, he said.

CREDAI National President Shekhar Patel said the real estate market has grown from an estimated $120 billion in 2017 to about $600 billion currently, with the sector projected to reach $1 trillion by 2030 and nearly $5.8 trillion by 2047.