Archive · 18 Jan 2026
Budget 2026: Real Estate Focus on Affordable Housing
The real estate industry in India is asking the government for help before the Budget 2026.
They want the government to make it easier and more profitable to build affordable homes and rental properties.
This is because the industry thinks that affordable housing is very important for creating jobs and helping the economy grow.
They also want the government to change some rules about taxes and home loans to make it simpler for people to buy homes.
The industry believes that these changes will help more people afford homes and make the real estate market stronger.
The government is also expected to focus on spending more money on building things like roads and schools, which will help the economy grow even more.
Real estate industry seeks government intervention for rental housing market reforms.
Affordable housing projects priced up to ₹45 lakh with specific carpet area limits.
Proposals include increasing stamp duty tolerance threshold and home loan deductions.
AI infrastructure and streamlined approvals are key demands for future growth.
Domestic demand and public capital expenditure are expected to drive economic growth in 2026.
- Who
- Real estate industry, including Naredco and CREDAI
- What
- Seeking policy push for affordable housing and rental market reforms
- When
- Ahead of Budget 2026
- Where
- India
- Why
- To boost job creation, facilitate manufacturing, and support economic growth
- Real Estate Contribution to GDP
- 7–8% currently, expected to grow to 13–15% by 2030
- Affordable Housing Price Cap
- ₹45 lakh
- Affordable Housing Carpet Area
- Up to 60 sq m in metro cities, 90 sq m in non-metros
- Stamp Duty Tolerance Threshold Proposal
- Increase from 10% to 25%
- Home Loan Deduction Proposal
- Increase from ₹2 lakh to ₹4–6 lakh
- AI Infrastructure Demand
- Key demand for data centres, logistics, and shared spaces
- Domestic Demand Growth Drivers
- 8th Pay Commission, state welfare spending, GST rate rationalisation
- Public Capital Expenditure
- Risen from ₹4.4 lakh crore in FY20 to over ₹11 lakh crore in FY25
Sources
ICRA estimates gross tax revenue growth at 7% in FY27
Sanjeev Ahluwalia | Budget Can Do Groundwork for Deep Reforms in India
Fiscal deficit to be set at 4.2% of GDP for FY27: Morgan Stanley
Former World Bank advisor suggests why macroeconomic strength must translate into structural growth - CNBC TV18
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Budget 2026: Real estate industry switches tracks to affordable housing; seeks policy push
