Red Tape, High Taxes, Labor Woes Block India's Affordable Home Dreams: CREDAI

India's real estate sector is grappling with persistent hurdles, with top industry body CREDAI-NCR calling for urgent government action to boost affordable housing. Speaking recently, CREDAI-NCR President Vishal Gupta highlighted that while the Real Estate (Regulation and Development) Act (RERA) has brought much-needed transparency, the path to truly affordable homes is blocked by complex business processes, high taxes, and a critical lack of skilled workers. This comes as the sector continues to push for key policy changes to meet growing demand across the country. The industry has been actively campaigning for the Union Budget 2026-27 to redefine 'affordable housing' by increasing apartment size limits and removing price caps, arguing that the current definition, unchanged since 2017, no longer matches rising land and construction costs. Developers also want a national mission for rental housing and more tax benefits for home loans. While recent GST 2.0 changes (introduced in September 2025) have aimed to simplify taxes and improve Input Tax Credit, potentially cutting construction costs, CREDAI still stresses the need for more tax rationalization. Meanwhile, a severe shortage of skilled construction workers, estimated to hit 5 million within five years, is driving up costs and delaying projects, adding another layer of challenge. Despite India climbing in global real estate transparency rankings, delays in government approvals and RERA registrations remain a major headache for developers. Government bodies like NITI Aayog have also stressed the need for significant land reforms, suggesting measures like expanding urban areas, reserving land for affordable housing in city plans, and boosting Floor Area Ratio. With the Union Budget 2026-27 largely missing specific incentives for affordable housing, the industry waits to see if a more unified, state-level approach can finally clear the way for accessible homes.