CREDAI Seeks Hike in ₹45 Lakh Affordable Housing Cap, Pushes for Better Sales Data

CREDAI’s new president, Shekhar Patel, has called for an urgent revision or removal of the ₹45 lakh price cap that defines affordable housing in India. Arguing that the cap is outdated, Patel says this restriction blocks eligible buyers from accessing tax and GST benefits meant for the segment.

The announcement was made at CREDAI’s leadership transition event in Gandhinagar, chaired by Gujarat Chief Minister Bhupendra Patel. Patel, who heads Ahmedabad-based Ganesh Housing Corp Ltd, succeeded Boman Irani of the Rustomjee Group as CREDAI President.

Speaking to Moneycontrol, Patel pointed out that while the size definitions for affordable homes, 60 sq. m. in Tier-I cities and 90 sq. m. elsewhere, remain feasible, the price cap no longer reflects market realities. “A 600 sq. ft. house in Mumbai may cost over ₹1 crore today. That’s not luxury housing,” he said. “The ₹45 lakh limit was set in 2017. Today, that house costs ₹75-80 lakh as per the RBI’s House Price Index. The cap must be revised or indexed to inflation.”

Affordable housing qualifies for a 1% GST rate and Pradhan Mantri Awas Yojana (PMAY) benefits—but only if the home is priced below ₹45 lakh. Patel noted that around 70% of new launches in Ahmedabad fall under the size norms but fail to qualify due to price.

The RBI’s HPI showed a 3.1% year-on-year rise in Q3 FY24. With input costs, labour, and inflation on the rise, Patel warned that the current pricing limit is no longer viable.

CREDAI also plans to set up a centralised data analytics hub to consolidate real estate sales and registration data from RERA and state revenue departments aiming to reduce reliance on varied third-party estimates.

On Gujarat’s GIFT City, Patel welcomed relaxed prohibition norms, saying it would help attract young professionals. “People want a normal lifestyle. Social freedom is essential for the 21-35 age group,” he said.

Developers including Adani Realty, Brigade Enterprises, and Sobha are actively investing in GIFT City, where large portions remain under construction.