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CREDAI Disappointed with Union Budget 2026

  //house-home.news-articles.net/content/2026/02/08/credai-disappointed-with-union-budget-2026.html
  Published in House and Home on Sunday, February 8th 2026 at 9:43 GMT by Goodreturns
      Locales: Delhi, Maharashtra, Karnataka, INDIA

New Delhi, February 8th, 2026 - The Confederation of Real Estate Developers' Associations of India (CREDAI) has voiced its disappointment with the Union Budget 2026, arguing it lacks the necessary impetus to sustain momentum in the crucial affordable housing sector. While acknowledging some positive elements, particularly the continued focus on infrastructure development, CREDAI leaders assert the budget missed opportunities to provide targeted support and concrete solutions to the challenges faced by developers and prospective homeowners.

Speaking to reporters today, CREDAI President Boman Irani stated, "While we appreciate the government's overall vision for economic growth, this budget unfortunately lacks the specific measures needed to truly unlock the potential of affordable housing. There's a notable absence of clarity regarding key tax benefits, and the incentives offered don't adequately address the financial pressures faced by developers committed to this vital segment."

The concerns stem from a confluence of factors currently impacting the affordable housing market. Rising land costs, increasing construction material prices (particularly post-pandemic supply chain adjustments), and high financing costs are all squeezing margins for developers. Without targeted intervention, CREDAI argues, the affordability of these homes is increasingly threatened, potentially undermining the government's own 'Housing for All' initiatives.

"We anticipated a more proactive approach," Irani continued. "A comprehensive review of land allocation policies, streamlined approval processes, and a reduction in the cost of capital for developers would have sent a strong signal of commitment. Sadly, these critical aspects were not adequately addressed."

CREDAI Vice President Rohan Bhojani echoed these sentiments, emphasizing the need for faster regulatory approvals. "The current approval process is often protracted and bureaucratic, adding significant delays and costs to projects. A streamlined system, perhaps leveraging digital technologies and single-window clearances, would drastically improve efficiency and accelerate project completion."

Bhojani also highlighted the potential for greater incentives for first-time homebuyers. "While some schemes exist, they often come with limitations regarding income levels or property value. Expanding eligibility criteria and offering more substantial subsidies - perhaps through interest rate reductions or tax breaks - would encourage greater participation and drive demand."

The budget's emphasis on infrastructure development, encompassing roads, railways, and urban transport, is generally welcomed by CREDAI. However, the organization argues that this broad approach isn't sufficient. "Infrastructure improvements are undoubtedly beneficial, but they need to be specifically geared towards facilitating affordable housing projects. This could involve prioritizing infrastructure development in areas designated for affordable housing or providing dedicated funding for infrastructure within these projects."

Industry analysts suggest that the lack of targeted incentives could have a ripple effect throughout the economy. The affordable housing sector is a significant driver of employment, stimulating demand for construction materials, labor, and related services. A slowdown in this sector could lead to job losses and hinder overall economic growth.

Looking ahead, CREDAI plans to engage with government officials to further articulate its concerns and propose specific policy recommendations. These include advocating for a dedicated affordable housing fund, simplifying land acquisition procedures, and implementing a risk mitigation mechanism for developers undertaking large-scale affordable housing projects.

"We remain committed to working with the government to achieve the goal of affordable housing for all Indians," Irani concluded. "However, a more collaborative and proactive approach is needed to overcome the current challenges and unlock the full potential of this vital sector. We urge the government to consider our recommendations and incorporate them into future policy initiatives." The coming months will be critical in determining whether the budget's shortcomings can be addressed through supplementary measures or if the affordable housing sector will face significant headwinds in 2026 and beyond.