CREDAI Wants Rs 45 Lakh Affordable-Housing Cap Removed: What Homebuyers Should Know
CREDAI has urged the government to remove the Rs 45 lakh price cap from the affordable-housing definition. What is proposed, what has not changed, and what buyers should watch.
Published
CREDAI has asked the Union government to remove the Rs 45 lakh price ceiling used in the affordable-housing definition and rely more heavily on home size. The proposal at CREDAI NATCON 2026 is an industry demand, not a notified change in law or tax policy. Homebuyers should continue to apply rules currently in force until the government formally announces any revision.
What happened
CREDAI president Shekhar Patel said the Rs 45 lakh ceiling, fixed in 2019, has become unrealistic as land, construction, approval and tax costs have risen. Hindustan Times reported on 3 October that the developers body is discussing affordable-housing policy with the housing ministry, finance ministry and NITI Aayog and hopes for policy initiatives over the coming six months.
CREDAI argues that a price ceiling can exclude modest homes in higher-cost cities even when floor area remains relatively small. It has argued for an area-led definition. These are proposals under discussion, not benefits that a buyer can claim today.
What has not changed
No government notification cited for this development has abolished the Rs 45 lakh ceiling. Affordable housing appears in different policy, tax and housing-scheme contexts, each with its own eligibility conditions. An industry proposal does not itself amend GST rules, income-tax provisions, lending rules or housing-scheme guidelines.
Separately, Ministry of Housing and Urban Affairs material on PMAY-U describes that scheme's own beneficiary and dwelling-size framework. Buyers should not assume that a future change to one definition would automatically rewrite every housing programme.
Why buyers should care
If policymakers revise the definition, the practical effect will depend on the final notification, including effective date, carpet-area limits, city classification and whether a price threshold remains. Until details exist, buyers should treat claims of a new affordable-housing benefit cautiously.
Compare total agreement value, carpet area, applicable taxes, registration costs, maintenance obligations, possession timeline and financing cost over the loan tenure.
What buyers can do now
Ask the developer to identify the exact rule behind an affordable housing claim. Check whether eligibility depends on price, carpet area, household income, location or project status. Do not budget for a proposed concession until the competent authority has notified it.
What to watch next
The next meaningful development would be an official policy paper, notification, GST decision or ministry announcement changing the applicable definition or benefits. Exact wording matters because housing programmes use different eligibility tests.
Homebuyers can use RiteAssetz home-loan tools to compare monthly repayments and follow RiteAssetz News and Insights for verified policy updates.
This article is for general information and explains a policy proposal reported on 3 October 2026.