CREDAI has renewed its demand to remove the ₹45 lakh price ceiling used in the affordable-housing framework it wants revised, arguing that rising development costs make it harder to supply lower-priced homes. The demand was reported on 2 October 2026 following remarks by CREDAI president Shekhar Patel in Kolkata.
PTI’s report, carried by The Economic Times, described the industry body as seeking an area-based definition instead of a price cap. The development is an industry representation to government, rather than a notification changing eligibility for buyers or projects.
The latest demand has an earlier policy background
CREDAI’s own press release dated 22 January 2026 provides primary-source context. Its Budget recommendations proposed removing the value threshold and increasing carpet-area limits to 90 square metres in metropolitan cities and 120 square metres in other cities. The release also called for better alignment between definitions used across housing and finance frameworks.
That earlier document shows that the argument predates this week’s convention. The fresh development is the renewed public pressure at the Kolkata event, not the first appearance of the proposal.
An early 3 October Hindustan Times report also covered the push for an area-based definition. It adds a fresh reporting timestamp without establishing that government has accepted the demand.
The area figures require careful reading
The coverage is not uniform about the precise limits being sought. PTI’s 2 October report describes retaining area limits of 60 square metres in metros and 90 square metres elsewhere while removing the price ceiling. CREDAI’s January release proposes expanding those limits to 90 and 120 square metres respectively.
Those versions should not be merged into a single approved formula. They establish a common argument for reconsidering the price threshold, while leaving the exact final design unresolved in the material reviewed.
The distinction also avoids confusing an industry request with a rule that a purchaser can already rely upon. No official notification implementing these proposed changes was located during verification for this edition.
Classification and household affordability are different questions
BrickBharat’s assessment is that changing a category’s definition would not, by itself, establish that a household can afford a particular apartment. Classification determines which properties fall within a policy framework. Household affordability depends on the purchase price, available savings, borrowing requirement and continuing expenses.
A larger apartment might fit an expanded area limit while still requiring a substantial financial commitment. Equally, removing a price ceiling would not automatically show that the benefit of any policy incentive reaches the buyer. That would depend on the eventual measure and how a project is priced.
For this reason, the proposal should be evaluated through its detailed design rather than the label alone. Useful questions include which households the measure is intended to assist, which homes qualify and whether the resulting supply meets demand in the relevant locality.
What would make this an implemented reform?
The next decisive evidence would be a government document setting out the change, its effective date and the provisions to which it applies. That document would also help resolve whether the eventual approach removes the price cap, alters floor-area limits or combines several changes.
Buyers comparing homes in Mumbai, Bengaluru, Delhi-NCR or other cities should treat the current reports as policy news. They do not establish new benefits for a specific purchase or a revised selling price for an individual development.
The Kolkata remarks keep affordable-housing supply on the policy agenda. Whether the demand leads to additional homes, different eligibility or measurable savings will require evidence beyond the convention statements. For now, the confirmed development is CREDAI’s renewed request for reform, with the final government response still unverified.
Sources and verification
- The Economic Times / PTI: displayed last updated 2 October 2026, 4:54 PM IST; a separate first-publication timestamp was not displayed. Reports remarks made on Friday, 2 October, in Kolkata.
- CREDAI official Budget recommendations: release dated 22 January 2026; historical policy context, not an October announcement or government approval.
- Hindustan Times — overnight coverage: published 3 October 2026, 12:24:32 AM IST; no separate update time displayed.
- Verification limit: No implementing government notification was located. Differing area proposals are identified above; no final thresholds or effective date are asserted.