The Union Budget 2026 generated significant anticipation within India’s real estate industry, particularly regarding affordable housing — a segment that has been under pressure due to rising costs and shrinking supply. Although headline reports show strong overall growth in residential real estate, data reveal that affordable housing continues to lag, with its share of total supply falling sharply in recent years. This imbalance underscores the need for targeted policy action to ensure that homeownership remains attainable for the broader population.

A key expectation from the Budget was the revision of the existing affordable housing price cap (₹45 lakh), a threshold that industry stakeholders argue no longer reflects current market realities in major cities. Developers and associations such as CREDAI sought an increase to as high as ₹90 lakh and expanded tax incentives that could reinvigorate housing launches in this category.

Fiscal support measures such as the potential reintroduction of tax breaks for developers and incentives for first-time homebuyers were also anticipated to make project economics more viable and reduce the financial burden on buyers. Recommendations from policy think tanks included restoring Section 80-IBA benefits for affordable housing and enhancing credit access through expanded loan guarantees, which could translate into more competitively priced homes.

Beyond fiscal tweaks, industry stakeholders highlighted the necessity of aligning GST structures with affordability goals, including revisiting tax rates on mid-segment housing to ease cost pressures for buyers.

In summary, the post-Budget 2026 landscape presents both challenges and opportunities: strategic policy interventions could help bridge the widening gap in affordable housing supply, support sustainable growth, and restore confidence among homebuyers and developers alike.

#RealEstateLaw #PropertyFraud #LegalAwareness