Union Budget 2026 will be presented on 1st February 2026, by the Finance Minister at a moment when India’s real estate market is seeking direction rather than stimulus. Housing demand has remained resilient across major cities, but affordability pressures continue to shape buyer behaviour and investment decisions.
For homebuyers, attention is centred on tax provisions and borrowing costs that influence monthly repayments. Developers are assessing measures tied to project execution, funding access, and cost stability. Investors, meanwhile, are focused on signals around infrastructure spending and urban development, both key drivers of long term property demand.
As the Finance Minister Nirmala Sitharaman lays out fiscal priorities for the year ahead, the Budget provides an early read on how housing and real estate fit into the government’s broader economic strategy. This article examines the key announcements and their implications for India’s property market in the current financial year.
Key Highlights Table
Below is the comparison of the 2025-26 and 2026-27 Union Budget:
|
Parameters |
2025-26 |
2026-27 (Expected) |
|
Urban Sector Reforms |
Urban governance, municipal services, and urban land planning reforms were incentivised |
Expanded urban planning reforms with single-window clearances and quicker approvals |
|
Urban Challenge Fund |
₹1 lakh crore fund announced; ₹10,000 crore allocation for 2025–26 |
Larger annual funding allocation and emphasis on the quality of infrastructure and city hubs |
|
SWAMIH Fund 2 |
₹15,000 crore blended finance facility for stalled housing projects |
Possible increase in fund size or broadened criteria for mid-income housing support |
|
Asset Monetisation Plan 2025-30 |
Plan launched to unlock ₹10 lakh crore for infrastructure |
Faster rollout with targeted real estate asset monetisation deals |
|
State Infrastructure Loans |
₹1.5 lakh crore in 50-year interest-free loans to states’ capex |
Continued or incremental funds tied to state urban and housing projects |
|
Tax Treatment of Residential Property |
Two self-occupied properties allowed nil annual value |
Hopes for enhanced tax incentives for homebuyers and a possible revision of tax slabs for housing |
|
Affordable Housing Specific Changes |
No GST change or new tax incentive announced |
The sector expects higher home loan interest deduction limits and GST rationalisation for housing |
|
National Geospatial Mission / Land Records |
Linked to urban sector reforms for better planning and governance |
Full implementation of geospatial land records and integration with urban development platforms |
Frequently Asked Questions:
1. What were the key real estate announcements in the Union Budget 2025-26?
Ans: The Budget focused on completing stalled housing projects, urban redevelopment, and infrastructure support. Major measures included the SWAMIH Fund 2, the Urban Challenge Fund, and higher capital support to states.
2. What is SWAMIH Fund 2, and why is it important for homebuyers?
Ans: SWAMIH Fund 2 is a ₹15,000 crore facility aimed at completing around one lakh stalled housing units, helping buyers stuck with delayed possession.
3. How does the Urban Challenge Fund impact real estate?
Ans: The ₹1 lakh crore Urban Challenge Fund supports city redevelopment, growth hubs, and water and sanitation projects, which can improve urban livability and support property demand..
4. How does infrastructure spending in the Budget 2025-26 affect property markets?
Ans: Higher capital expenditure and long-term loans to states can improve connectivity and urban services, which generally support real estate demand.
5. What does the Budget say about urban planning and land records?
Ans: The National Geospatial Mission was announced to modernise land records and improve urban planning using digital mapping.
6. What are the expectations from the Union Budget 2026 for real estate?
Ans: The sector expects tax relief for homebuyers, GST rationalisation, rental housing support, and faster approval processes in the next Budget.
