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As India approaches the Union Budget announcement on February 1, 2026, discussions around Real Estate Budget 2026 expectations are gaining momentum. For many households, owning a home continues to feel financially challenging due to high property prices, rising EMIs, and additional transaction costs. At the same time, developers are closely tracking policy signals, as buyer sentiment and project feasibility are often influenced by affordability measures and regulatory clarity.
Across pre-budget media coverage, expert opinions, and social conversations, one theme dominates—affordability. Homebuyers are seeking tax relief, clearer definitions, and stronger consumer protection, while developers are looking for cost rationalisation, smoother approvals, and stable funding channels. This article summarises the major expectations shaping the real estate sector ahead of Budget 2026.
Why Real Estate Budget 2026 Expectations Focus on Affordability
Affordability in real estate goes beyond the listed price of a home. It includes home loan interest rates, EMI burden, registration and stamp duty costs, and the financial risk caused by construction delays. When monthly outflows increase, many buyers either postpone their purchase or compromise on location and size.
From a market perspective, affordability directly influences demand. Supportive policies can bring first-time buyers and mid-income families into the market, while prolonged cost pressure may slow activity in key segments. This is why affordability remains central to Real Estate Budget 2026 expectations.
Homebuyer Demands in Real Estate Budget 2026 Discussions
1. Clear Definition of Affordable and Mid-Segment Housing
One of the strongest demands from homebuyers is clarity around what qualifies as “affordable” and “mid-segment” housing. Price caps that work in one city often do not apply in another.
Buyers are seeking:
- Location-specific price caps for metro and non-metro cities
- Consideration of per-square-foot pricing in high-cost urban areas
- Inclusion of basic livability factors such as open spaces and civic infrastructure
The goal is to ensure that genuine end-users can realistically benefit from housing policies.
2. Stronger Action Against Project Delays
Construction delays remain a major concern, often forcing buyers to pay rent and EMIs simultaneously. In Real Estate Budget 2026 expectations, buyers commonly ask for:
- Clear penalties for unjustified project delays
- Stronger monitoring of promised versus delivered timelines
- Faster grievance redressal mechanisms
Greater accountability can significantly improve buyer confidence.
3. Interest Support for Responsible EMI Payments
Some discussions highlight the idea of interest support linked to timely EMI payments. Buyers suggest that those who consistently repay on time could receive partial interest relief.
Key expectations include:
- Clear eligibility criteria
- Focus on genuine end-users
- Simple, accessible processes
4. Increase in Home Loan Interest Deduction Limit
Another frequently discussed demand is raising the home loan interest deduction limit from ₹2 lakh to ₹4 lakh. Many buyers feel the current limit does not reflect present-day property prices or loan sizes.
An increase could:
- Reduce taxable income
- Improve household cash flow
- Support first-time homebuyers in urban markets
5. More Realistic Affordable Housing Caps for Metros
In major cities, current affordable housing caps often fall short of market realities. Buyers expect revised limits that:
- Reflect actual urban pricing
- Expand eligibility for working families
- Align policy intent with real demand
Developer Wishlist in Real Estate Budget 2026 Expectations
1. GST Rationalisation on Construction Inputs
Developers continue to highlight rising input costs, particularly for cement and other materials. Expectations include:
- GST rationalisation
- Greater cost predictability
- Simplified tax structures
2. Tax Relief on Property Transfers and Gift Deeds
Developers and market participants also seek clarity and reasonable taxation on family property transfers and gift deeds to reduce transaction friction.
3. Incentives for Green and Sustainable Housing
Sustainability is increasingly part of budget discussions. Developers support incentives for green building practices, provided compliance remains practical and approvals are faster.
4. Faster Approvals and Simpler Clearance Systems
Approval delays add to project costs. Developers are looking for:
- Time-bound approvals
- Fewer procedural layers
- Better coordination across departments
5. Liquidity Support for NBFC Funding
For mid-sized developers, stable NBFC funding is critical. Expectations include policy support that ensures consistent access to credit for viable projects.
6. Policy Continuity for REITs and Infrastructure Support
Stable policy for REITs and continued infrastructure investment are seen as essential for long-term sector growth and demand expansion.
How Homebuyers Can Use This Period to Plan Better
Regardless of budget outcomes, buyers can use this period to prepare:
- Review loan eligibility and EMI comfort
- Compare locations based on commute and pricing
- Shortlist homes based on core needs
- Keep documentation ready for quicker processing
Conclusion
The Real Estate Budget 2026 expectations reflect a shared desire for affordability, clarity, and stability. Homebuyers are looking for realistic tax relief and consumer protection, while developers seek cost control and smoother execution. While policy outcomes remain uncertain until February 1, these discussions highlight the direction stakeholders hope the real estate sector will take in 2026.
At Urvik Consulting, we believe informed planning and realistic expectations remain key, regardless of policy changes.