CREDAI Analysis: Budget 2026 Prioritizes Tier-2 Infrastructure Over Affordable Housing, Signaling Strategic Urban Development Shift

The Confederation of Real Estate Developers' Associations of India (CREDAI) has issued a mixed assessment of Budget 2026, acknowledging the government's infrastructure focus while highlighting significant omissions in affordable housing policy. The budget allocates substantial resources to tier-2 city development through infrastructure enhancement, a move CREDAI recognizes as potentially transformative for regional economic growth and urban decentralization. However, the organization notes a critical absence of concrete measures addressing affordable housing, describing the budget as offering 'nothing concrete' in this sector. This dichotomy suggests a strategic prioritization of long-term urban infrastructure over immediate housing accessibility solutions. The infrastructure push in tier-2 cities could stimulate real estate markets indirectly by improving connectivity and livability, yet the lack of targeted affordable housing initiatives may exacerbate urban affordability challenges. CREDAI's response reflects broader industry concerns about balanced urban development, where infrastructure investment must be complemented by housing policies to ensure inclusive growth. The budget's emphasis on tier-2 cities aligns with national urbanization goals but leaves unresolved the pressing demand for affordable housing, indicating potential policy gaps that stakeholders will monitor closely in implementation phases.