CREDAI urges raising affordable housing cap to ₹80 lakh with 1% GST reform

Marking its 25th foundation day, the Confederation of Real Estate Developers’ Associations of India (CREDAI) has proposed raising the affordable housing cap from ₹45 lakh to ₹75-80 lakh. The association has also urged the government to apply a 1% Goods and Services Tax (GST) on under-construction homes priced between ₹75 and ₹80 lakh, replacing the current 5% GST applicable on homes above ₹45 lakh. According to CREDAI president Boman Irani, revising the cap, set in 2017, aligns with rising property prices, enhancing affordability and benefiting millions of homebuyers seeking budget-friendly housing options.

CREDAI has also suggested that affordable housing be redefined based solely on carpet area—60 square metres for metros and 90 square metres for non-metros—eliminating price caps. Additionally, it advocates for 100% tax deductions on home loan interest payments, replacing the existing ₹2 lakh limit under the Income Tax Act. CREDAI’s chairman, Manoj Gaur, emphasised improving ease of doing business, highlighting delays of over a year in obtaining project approvals as a significant barrier to development. Such policy changes, he argued, would invigorate demand in the affordable and mid-income housing sectors, directly impacting urban growth and economic stability.

The association’s initiatives are not limited to policy advocacy. To commemorate its milestone, CREDAI has pledged to upgrade 1,000 government schools nationwide in partnership with an NGO, investing ₹11 lakh per school to create smart classrooms and ensure essential facilities like clean water and sanitation. It also plans to plant trees, develop urban forests, and construct eco-friendly green buildings. These efforts underline its commitment to social responsibility and sustainability, enhancing its role in shaping urban landscapes.

CREDAI’s vision of sustainability aligns with its goal of skilling five lakh construction workers, fostering environmentally conscious development while bolstering the workforce. By championing reforms in affordable housing and sustainable practices, the association hopes to create equitable growth across India’s real estate and social sectors.