The Indian real estate sector is witnessing a robust surge in demand for premium and luxury properties, but the crucial affordable housing segment continues to face significant headwinds, according to a top industry leader. Gummi Ram Reddy, the president-elect of the Confederation of Real Estate Developers' Associations of India (CREDAI), highlighted this divergent trend in a recent interview, pointing to the challenges that need immediate policy attention.
Premium Boom vs. Affordable Housing Struggle
Gummi Ram Reddy confirmed that the real estate market is experiencing strong growth in the premium and high-end segments. This trend is driven by evolving buyer preferences and increased demand for larger, better-equipped homes in the post-pandemic era. However, he swiftly shifted focus to the less rosy picture for affordable housing, a segment critical for achieving broader socio-economic goals like 'Housing for All'.
Reddy outlined several persistent obstacles that are stalling progress in affordable housing. Key among these are rising input costs for construction materials, complexities in land acquisition, and lengthy approval processes. These factors collectively squeeze profit margins for developers in this segment, making many projects financially unviable and discouraging new investments.
Eyes on the Upcoming Union Budget
With the Union Budget for the next fiscal year on the horizon, the real estate sector has clear expectations. As the voice of developers, CREDAI is advocating for specific measures from the government to reinvigorate affordable housing. Gummi Ram Reddy emphasized the need for policy interventions that can reduce the cost of development and incentivize both builders and buyers.
The industry body is likely pushing for measures such as:
- Enhanced tax benefits for developers undertaking affordable housing projects.
- Further extensions or expansions of interest subsidy schemes for homebuyers, like the PMAY (Pradhan Mantri Awas Yojana).
- Streamlining of the approval and clearance processes to reduce time and cost overruns.
- Mechanisms to control the volatility in prices of key construction materials like steel and cement.
The interview, published on 21 December 2025, underscores a critical juncture for the sector. While the premium segment's growth indicates a healthy market for investors and upper-income buyers, a sustained push is required to ensure housing accessibility for the economically weaker sections and middle-income groups.
A Call for Balanced Growth
The insights from CREDAI's president-elect point to a two-speed real estate market. The sector's overall health, however, depends on balanced growth across all segments. The upcoming Union Budget presents a pivotal opportunity for the government to address the structural challenges in affordable housing. Successful policy measures could unlock massive latent demand, drive job creation in construction and allied industries, and contribute significantly to inclusive economic growth.
As Gummi Ram Reddy prepares to lead CREDAI, his comments set the agenda for the industry's dialogue with policymakers. The focus is clear: harnessing the momentum from the premium segment to fuel a much-needed revival in the affordable housing space, ensuring the real estate boom benefits a wider cross-section of Indian society.
