Archive · 1 Feb 2026
Budget 2026 Disappoints Real Estate Sector
The Union Budget 2026-27 has disappointed the real estate sector because it didn't give any special help for building affordable homes.
Experts say this might make it harder for people to find good homes to live in.
They are also sad because the government cut money for important programs that help cities, like the Swachh Bharat Mission and the Smart Cities Mission.
But there are some good things too, like the government is going to help big companies build data centers in India and make more money from things like trains and ports.
The government is also focusing on making roads and other important things in smaller cities, which can help the real estate business.
Real estate experts expressed disappointment over the lack of incentives for affordable housing in the Union Budget 2026-27.
The share of affordable housing in new homes is projected to decline from 18% to 12% due to rising construction costs and land prices.
The government's focus on infrastructure creation, Tier II and Tier III growth corridors, and connectivity in urban economic regions provides a supportive backdrop for the real estate sector.
The Union Budget 2026-27 introduced significant cuts to urban development programs, including a 50% reduction in the Swachh Bharat Mission-Urban allocation and no new funds for the Smart Cities Mission.
The government proposed to accelerate the recycling and monetization of significant real estate assets of CPSEs through the setting up of dedicated REITs, targeting Rs 10 lakh crore assets.
- Who
- CREDAI, ANAROCK, Knight Frank India, CBRE, Ministry of Housing and Urban Affairs (MoHUA)
- What
- Expressed disappointment over the Union Budget 2026-27's lack of incentives for affordable housing and significant cuts to urban development programs
- When
- After the Union Budget 2026-27 announcement
- Where
- New Delhi, India
- Why
- To boost demand and supply of affordable housing and support urban development
- Organization
- CREDAI, ANAROCK, Knight Frank India, CBRE
- Current Affordable Housing Share
- 18%
- Projected Affordable Housing Share
- 12%
- Government Focus
- Infrastructure creation, Tier II and Tier III growth corridors, connectivity in urban economic regions
- Key Benefits for Real Estate
- Improved connectivity, new growth corridors, long-term urban development
- REITs for CPSEs
- Rs 10 lakh crore assets, including railway properties, port land, power transmission infrastructure, telecom towers, government properties
- Tax Holiday for Cloud Services
- Till 2047 for foreign companies providing cloud services using data centre services from India
- Swachh Bharat Mission-Urban Allocation
- Rs 2,500 crore (reduced from Rs 5,000 crore)
- MoHUA Budget Reduction
- Rs 11,255 crore (11.6% decrease)
- Smart Cities Mission
- No new allocation
- AMRUT Allocation
- Rs 8,000 crore (down from Rs 10,000 crore)
- PMAY Subsidy Reduction
- Rs 3,000 crore (down from Rs 3,500 crore)
- PM-eBus Sewa Scheme Allocation
- Rs 500 crore (down from Rs 1,300 crore)
Sources
Union Budget Offers Nothing Concrete for Affordable Housing: CREDAI
Swachh Bharat Mission Budget Slashed by 50%, Major Cuts Hit Urban Schemes
Budget 2026: Budget 2026 a 'disappointment' for real estate sector: Experts
