BAKU, Azerbaijan, May 20. A more flexible and
modern model for defining affordable housing is needed, President
of CREDAI National (Confederation of Real Estate Developers’
Associations of India), Shekhar Patel said, Trend reports.


He made the statement during a business roundtable on affordable
housing financing held as part of the World Cities Forum in
Baku.


Shekhar Patel stated that the key problem facing India’s
affordable housing market is not a shortage of demand or supply,
but rather an outdated regulatory definition of the “affordable
housing” category.


Moreover, he noted that the current criteria, introduced about
eight years ago, no longer reflect the current economic
reality.


According to him, there remains steady demand in India for
housing units ranging from 60 to 90 square meters in the middle and
lower-middle-class segments; however, such properties do not always
formally qualify as affordable housing due to the established price
threshold of approximately 45 lakh rupees (about $42,000).


He emphasized that in recent years, construction costs have
risen significantly due to inflation and increases in the cost of
land, materials, and infrastructure, while housing prices have
risen by an average of 8–10% annually.


“As a result, apartments that previously met the criteria for
affordable housing now cost nearly twice as much, yet still do not
qualify under the updated classification,” he said.


Patel also highlighted the tax burden in the real estate sector,
noting that combined city, state, and federal taxes can reach
31–50% of a property’s value, which further limits housing
affordability for buyers.







He called for a reevaluation of the approach to defining
affordable housing, suggesting that the criteria should focus not
only on price but also on square footage, urban characteristics,
and a country’s level of economic development. In his view, the
current classification system distorts statistics and reduces the
effectiveness of government support programs.


“We have been discussing this with the government for the past
few years and believe that a more flexible and modern model for
defining affordable housing is necessary,” he noted.


Today, the fourth day of the WUF13 conference is taking place in
Baku.


The first day included a ministerial meeting dedicated to the
New Urban Agenda, a ministerial roundtable, assemblies for women
and civil society, business sessions, and discussions on urban
prosperity. An official ceremony marking the raising of the UN and
Azerbaijani flags also took place.


The second day stood out for the inaugural Leaders' Summit,
featuring high-level discussions on the global housing crisis,
urbanization policy, and urban resilience. Concurrently, the
opening of the Mexico City pavilion took place, serving as a
significant platform for expanding cooperation with the Latin
American region and preparing for WUF14.


The third day of WUF13 featured a comprehensive program of
events covering the global housing crisis, the formation of safe
and inclusive cities, climate resilience, artificial intelligence
and urban governance, green urbanization, social equity, and
sustainable transport.


WUF13, which has attracted more than 40,000 registered
participants from 182 countries, will continue until May 22. Held
under the theme “Housing the world: Safe and resilient cities and
communities,” the forum brings together governments, international
organizations, experts, and representatives of civil society to
strengthen global cooperation in the field of sustainable urban
development.