The 2026 Union Budget has highlighted the importance of maintaining economic stability and developing infrastructure and the economy over time. Housing was not directly addressed in the 2026 Budget, but the result has been to encourage the development of a demand-driven, balanced real estate market in India.
The strong emphasis on fiscal discipline, capital investment, and urban infrastructure development will contribute to long-term housing demand in India, especially in more urbanised areas where housing is least affordable.
Housing Market Trends: Continued Focus on Mid-Income Demand
Industry experts believe the housing market is entering a new phase. Growth is slowly shifting away from luxury housing toward the mid-income segment.
Sharing his views on the changing housing landscape, Tanuj Shori, Founder and CEO of Square Yards, said, “The Indian housing market is clearly moving out of a luxury-led upcycle and into a more value-driven phase, with the mid-income segment poised to anchor growth as premium demand begins to stabilise. From the 2026 Union Budget, one should expect a sharper focus on improving affordability through enhanced tax relief for mid-income homebuyers, higher interest deduction limits and sustained investment in urban infrastructure.”
He also highlighted the need for policies that support both demand and supply. “Equally important is policy support that encourages supply in the affordable and mid-market segments, as recent launches have been disproportionately skewed towards higher ticket sizes. A budget aligned to these realities can strengthen end-user demand, improve price-to-income dynamics and support a more balanced and sustainable phase of urban housing growth”, Shori said.
Investment Infrastructure Push – Impact on Housing Demand
The key focus of the budget is investment in infrastructure and urban development through improved connectivity, job creation, and increased housing demand. Improvements to cities and transport networks make ongoing investment an important enabler of improved affordability and quality of life.
Expectations for Homebuyers
Homebuyers will see some limited assistance under the Union Government’s 2026-27 Economic Plan across India, with ongoing work underway in housing. As the Government continues to invest in making homes more affordable for first-time buyers, the Homebuyer will see significant growth in their overall investment.
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The Indian Express: https://bit.ly/3Z80hoC
Published Date: 28 January 2026
