Union Budget: CREDAI flags lack of affordable housing push, warns share may shrink further

Realtors' apex body CREDAI on Sunday expressed disappointment over the Union Budget 2026-27, saying it failed to offer any concrete measures to boost demand and supply in the affordable housing segment.The association, which represents around 15,000 real estate developers across the country, warned that the share of affordable housing in new home launches could shrink further in the absence of policy support.Commenting on the Budget, CREDAI National President Shekhar Patel said the industry body was "deeply disappointed that the Budget offers nothing concrete for affordable housing." With the current, outdated definition of affordable housing still in place, Patel cautioned that the segment’s share could fall from 18% to nearly 12 % of total housing supply."This is a serious warning sign for India’s lower middle class and middle class. CREDAI believes that affordable housing is not a welfare scheme – it is economic infrastructure. It is a major driver of employment, consumption, and social stability," he said.Patel pointed out that rising construction costs and land prices, without matching policy support, are discouraging developers from entering the affordable housing space."If affordable housing supply continues to weaken, the consequences are clear: higher rentals, longer commutes, and growth of informal housing," he warned.CREDAI urged the government to give urgent policy attention to the segment to ensure inclusive and sustainable urban growth.Despite its concerns, the association welcomed the government’s continued focus on infrastructure creation, calling it a major positive for the real estate sector.Investments in highways, metro projects, logistics corridors, railways and urban infrastructure are expected to improve connectivity, unlock new growth corridors and support long-term urban development, it added.