CREDAI Urges Increase in Hike Affordable Housing Cap to Rs 80L
CREDAI, the Confederation of Real Estate Developers' Associations of India, has called for an increase in the affordable housing cap to Rs 80 lakh in a bid to boost the sector and make homes more accessible to the economically weaker sections.
Affordable HousingCredaiReal EstateGovernmentHomebuyersReal Estate NewsApr 19, 2025
CREDAI's proposal comes at a time when the real estate sector is facing numerous challenges, including a slowdown in sales and a high inventory of unsold units. By raising the cap, the association believes that more individuals and families will be able to qualify for affordable housing, leading to increased demand and a more vibrant market.
The real estate sector in India has long been grappling with the issue of affordable housing. Despite several government initiatives and incentives, the gap between demand and supply remains wide. According to recent data, the urban areas alone require around 10 million affordable homes to meet the housing needs of the population. The current cap of Rs 45 lakh is seen as a major bottleneck, as it limits the eligibility of potential homebuyers and restricts the scope of developers to build more affordable homes.
CREDAI's national president, Sohail Mujtoba, emphasized the importance of the proposal, stating, 'Raising the cap to Rs 80 lakh will not only make more homes accessible to the economically weaker sections but also provide a much-needed boost to the real estate sector. It will encourage developers to invest in affordable housing projects, leading to a reduction in the unsold inventory and a more stable market.'
The proposal has received mixed reactions from various stakeholders. While many developers and industry experts support the idea, some financial institutions and policymakers have raised concerns about the potential impact on the housing finance market. They argue that a higher cap could lead to an increased risk of non-performing assets (NPAs) and a strain on the financial system. However, CREDAI counters these concerns by highlighting the extensive due diligence processes and robust credit scoring systems in place to mitigate such risks.
The government's response to CREDAI's proposal will be crucial in determining the future of the affordable housing sector. If implemented, the increased cap could have far-reaching benefits, including the creation of jobs, the stimulation of the economy, and the improvement of living conditions for millions of families. The government has been proactive in promoting affordable housing through various schemes, such as the Pradhan Mantri Awas Yojana (PMAY), which aims to provide 'Housing for All' by 2022. However, the success of these schemes depends significantly on the level of support and incentives provided to developers and homebuyers.
In conclusion, the proposal by CREDAI to increase the affordable housing cap to Rs 80 lakh is a step in the right direction. It addresses the immediate needs of the economically weaker sections and provides a much-needed impetus to the real estate sector. The government's decision on this matter will be closely watched by all stakeholders, and its implementation could have a transformative impact on the lives of many Indians.
Frequently Asked Questions
What is the current affordable housing cap in India?
The current affordable housing cap in India is set at Rs 45 lakh.
What is CREDAI's proposal for the affordable housing cap?
CREDAI proposes to increase the affordable housing cap to Rs 80 lakh.
Why is CREDAI making this proposal?
CREDAI believes that raising the cap will make more homes accessible to economically weaker sections, boost the real estate sector, and reduce the unsold inventory of homes.
What are the potential benefits of increasing the affordable housing cap?
Increasing the cap could lead to the creation of jobs, stimulate the economy, improve living conditions, and help meet the housing needs of the population.
What government schemes are promoting affordable housing in India?
The Pradhan Mantri Awas Yojana (PMAY) is a key government scheme aimed at providing 'Housing for All' by 2022.
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