A major theme at the 24th CREDAI NATCON is the builders’ push to change the definition of affordable housing, with the real estate developers’ body arguing that the current ₹45 lakh price cap, fixed in 2019, has become outdated and ‘currently not relevant’ amid rising land, construction, approval and tax costs. It has proposed that affordable housing instead be defined based on area and hoped policy initiatives will be announced over the next six months to boost the supply.“The current price cap for affordable housing of ₹45 lakh, fixed in 2019, has become unrealistic and is currently not relevant because land, approval and construction costs have risen sharply. The category should be defined by area, not price,” CREDAI president Shekhar Patel said at the 24th CREDAI NATCON in Kolkata.“We are holding discussions with the housing ministry, finance ministry and NITI Aayog to increase the size of affordable housing in metro cities from 60 sq m to 90 sq m and in non-metros from 90 sq m to 120 sq m. The concern is urgent because affordable housing’s share in residential sales has fallen from about 50% to 14%,” he said.Patel said developers were unable to supply enough affordable housing because of high input costs and taxes.“We are not able to supply enough affordable housing,” he said, pointing to land prices, rising construction costs and high taxes as major constraints to increasing supply.
Also Read: Mumbai is the ‘mother of redevelopment models’, CREDAI-NATCON leadership urges other cities to emulate itAccording to Patel, developers pay taxes to the Centre, state governments and municipal corporations that together can account for 30% to 50% of a home’s sale value.“We are working with the government to overcome these constraints and challenges,” Patel said, expressing hope that policy initiatives would be announced over the next six months to help boost the supply and demand for affordable homes.
Also Read: Mumbai leads top 9 cities in residential sales value with 34% share in FY26: CREDAI-ANAROCK report
The Confederation of Real Estate Developers Associations of India (CREDAI) is organising its flagship conference 'NATCON' during October 2-4 in Kolkata. More than 1000 builders are participating in this three-day event.
Urban Land Ceiling Act an ‘impediment to development’: WB finance minister
{{/usCountry}}The Confederation of Real Estate Developers Associations of India (CREDAI) is organising its flagship conference 'NATCON' during October 2-4 in Kolkata. More than 1000 builders are participating in this three-day event.
Urban Land Ceiling Act an ‘impediment to development’: WB finance minister
{{/usCountry}}Earlier in the day, West Bengal Finance Minister Swapan Dasgupta, addressing the 24th CREDAI NATCON, emphasised the need to scrap or modify certain laws, including the Urban Land (Ceiling and Regulation) Act, 1976, which he described as an “impediment” and “deterrent” to development.
“We need to get the organised sector into West Bengal and Kolkata so that a degree of order, regulation and accountability can be brought into this. This is why I feel all of you are needed because you represent the organised force. You’re not the standalone sharks,” Dasgupta said.
The minister said the government welcomed large developers who could take up the mega projects it has planned for the state.
“We need RERA (Real Estate Regulation and Development Act) to be put into full operation here, which is why the organised sector is welcome. I think their presence will play a very important role in redeveloping Kolkata, which needs a renewal of housing,” Dasgupta said.
He assured real estate developers that the government would create an environment in which they could operate responsibly, while acknowledging that certain legislative provisions needed to be modified.
“We have certain laws which date back to the ’70s, which the rest of India has abolished, but we, for reasons left unsaid, didn’t. One of them is the Urban Land Ceiling Act. It is an impediment and a deterrent to development. It has to go,” he said.
Dasgupta also highlighted issues related to barga land, which refers to agricultural land cultivated by sharecroppers.
“It’s not an urban issue; it’s a rural issue. But in the coming days, as the state will have more factories, logistical bases, technology parks and others, these laws will come into effect and are basically impediments to growth,” he said.
He said the government may consider diluting Section 14Y of the West Bengal Land Reforms Act to facilitate the setting up of industries. The provision relates to exemptions from restrictions on land holdings beyond the prescribed ceiling.
Asserting that West Bengal presents significant opportunities for investors, Dasgupta said the state needs modernisation and upgradation and urged developers and investors to participate in its development.