Budget 2026 Real Estate Expectations: According to experts, “Currently, luxury housing is growing, but the affordable segment is languishing. If this budget doesn’t introduce concrete policy changes, the gap between the common man and housing will become increasingly difficult to bridge.”
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Budget 2026 Expectations: For the middle class, buying a home is no longer just an investment, but a life’s biggest challenge. Amid rising interest rates and skyrocketing prices, homebuyers and the real estate sector have high hopes for Budget 2026. Pradeep Mishra, founder and expert at Oram Group, has outlined five major reliefs for the housing sector in the upcoming budget that could change the fortunes of first-time homebuyers.
Increasing the tax exemption limit on home loan interest (Section 24b)
Currently, the maximum exemption on home loan interest is ₹2 lakh under Section 24(b) of the Income Tax Act. Given rising property prices, experts are calling for this limit to be increased to ₹4 lakh to ₹5 lakh. This will increase the middle class’s disposable income, allowing them to take on larger loans.
New Definition of ‘Affordable Housing’
Currently, a home costing up to ₹45 lakh is considered ‘affordable,’ but in metro cities (Delhi-NCR, Mumbai), it is difficult to find a home at this price. There is a demand to increase this limit to ₹75 lakh to ₹1 crore. This will bring more homes into the ‘affordable’ category, allowing buyers to benefit from lower interest rates and government subsidies.
Return of Housing Subsidy (PMAY/CLSS)
The Credit Linked Subsidy Scheme (CLSS) previously helped millions of people find homes. The interest subsidy scheme for first-time homebuyers and the Mid-Income Group (MIG) could be reinstated or expanded. The subsidy will reduce the monthly EMI burden, making home purchases accessible to lower- and middle-income groups.
Reform of GST on Under-Construction Properties
Currently, the GST levied on under-construction homes poses an additional financial burden for buyers. Rationalizing GST rates and restoring input tax credit (ITC) are expected to reduce project costs. If builders receive the ITC benefit, they may reduce home prices, which will directly benefit end-users.
Expansion of SWAMIH Fund for Stalled Projects
Thousands of buyers across the country have their money stuck in stalled projects. The budget is expected to include a further allocation for the SWAMIH Fund (Special Window for Affordable and Mid-Income Housing). This will provide last-mile funding to stalled projects, enabling millions of homebuyers to regain possession of their flats.
Experts Opinion: Why is this a ‘Make-or-Break’ Budget?
According to Pradeep Mishra, luxury housing is currently growing, but the affordable segment is languishing. Without concrete policy changes in this budget, the gap between the common man and housing will widen to the point where it will be difficult to bridge. Emphasis on single-window clearance and infrastructure is as important as tax relief.
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