Affordable Housing Policy Due in 6 Months: Rs 45 Lakh Cap
The Centre is working on a new affordable housing policy, and a revised framework is expected within the next six months, CREDAI President Shekhar Patel said. The developers' body is pushing to remove the Rs 45 lakh price cap used in the current definition of affordable homes.
What CREDAI wants
- Drop the price cap: keep only a size limit
- Size limits: 60 sq m for metros and 90 sq m for non-metros to qualify as affordable
- Reason: the price ceiling has become a constraint as property prices and development costs have risen across cities
Who is involved
Patel said the industry is in discussions with the Housing Department, the Finance Department and NITI Aayog as the government works on the proposal.
The supply problem
CREDAI says land availability, taxes and approval processes are limiting affordable supply. Patel said organised developers are currently unable to supply enough affordable units to meet buyer needs, and that the share of affordable homes in overall residential sales has declined.
Why it matters
The price cap decides which projects count as affordable. If it is removed, more homes in expensive cities could qualify. If it stays, projects in costly metros may keep falling outside the definition.
Caution
This is an industry statement about a policy still being drafted. The final definition, benefits and timing are not yet public.