CREDAI Advocates for Affordable Housing Reform at UN-Habitat World Urban Forum
New Delhi, May 21, 2026: The Confederation of Real Estate Developers’ Associations of India (CREDAI) is representing the nation’s real estate sector at the 13th World Urban Forum (WUF13), convened by UN-Habitat. Running from May 17–22, 2026, the international conference brings together global leaders, policymakers, financial institutions, and urban development experts to address housing finance, climate-linked risks, and sustainable city expansion, CREDAI said in a press release.
Speaking at a key session titled “De-Risking Housing Finance: Unlocking Private Capital for Adequate Housing at Scale,” CREDAI President Shekhar G. Patel emphasized that institutional capital will only deploy into the sector if developers can maintain underlying project viability.
“De-risking housing finance requires affordable housing policies that remain aligned with economic realities and evolving urban costs. Private capital will participate at scale only when housing projects remain viable for developers, financially accessible for buyers and sustainable from a lending perspective. Housing finance frameworks must therefore evolve in a way that balances affordability, project viability and long-term investment confidence.”
Addressing delegates, Patel noted that India’s affordable housing shortage is increasingly a product of outdated policy parameters rather than a lack of consumer demand. While market demand for homes measuring 60 to 90 square meters remains resilient, a substantial portion of these properties no longer qualify for state affordable housing incentives due to a static ₹45 lakh regulatory price cap. The current definition, established nearly eight years ago, has failed to adapt to an economy where inflation has averaged close to 6% annually and municipal housing prices have surged by 8% to 10% year-on-year.
Furthermore, cumulative fiscal burdens continue to suppress project economics. CREDAI highlighted that combined statutory costs—including the Goods and Services Tax (GST), state stamp duties, infrastructure development charges, and municipal approval premiums—now consume 35% to 50% of a property’s final retail sale value, intensifying the friction between intent-driven policy and baseline developer margins.
As part of the ongoing forum, Patel is also scheduled to join global development finance institutions and academics for a secondary session, “Housing Market Innovation: Blending Planning and Finance for Inclusive Urban Growth.” The segment will analyze the core relationships linking urban master planning, global credit structures, and investment-led urban migration.
