Realty sector seeks revision of affordable housing price cap ahead of Budget 2026
GS3Economy · S&T · Environment · Security· Industry, investment & MSMEs· Mains·
Why in news
CREDAI has urged the government to revise the affordable housing price cap from ₹45 lakh to ₹80-90 lakh in the upcoming Union Budget 2026 to revive demand and address stalled projects.
Background
CREDAI, a real estate industry body, is seeking a price ceiling increase to ₹80-90 lakh for affordable housing. The group also proposed reducing GST on works contracts and restoring the additional interest deduction under Section 80EEA.
Facts for Prelims
- FactCurrent affordable housing price ceiling: ₹45 lakh
- FactProposed affordable housing price ceiling: ₹80-90 lakh
- Act / BillSection 80EEA: Provides additional interest deduction for home loans
- BodyCREDAI: A prominent real estate industry body in India
For Mains
Q. Discuss the role of fiscal policy and infrastructure status in revitalizing the real estate sector to meet the housing demands of the growing middle-income population.
Dimensions to cover in your answer
- Fiscal friction: Balancing GST reductions on works contracts with maintaining revenue targets
- Credit accessibility: Addressing developer liquidity constraints to lower EMIs for first-time homebuyers
- Urban planning: Bridging the supply-demand gap in Tier 1 and Tier 2 cities like Visakhapatnam
Keywords: Fiscal policy · Affordable housing · Credit flow · Infrastructure status · Demand-supply gap
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