Realty Leaders Demand Affordable Housing Reset for Budget 2026

Why Affordable Housing Is Back in Focus

As India prepares for Union Budget 2026, affordable housing has re-emerged as a central theme in policy discussions. Rising urbanisation, widening income disparities, and escalating construction costs have collectively intensified housing stress for low- and middle-income households. Against this backdrop, industry stakeholders are calling for targeted interventions that go beyond incremental tweaks and instead deliver a structural reset.

The urgency of this issue was highlighted during a recent virtual conference hosted by the National Real Estate Development Council (NAREDCO), where policymakers, developers, and housing experts examined the gaps in the current affordable housing framework.

Industry’s Call for a Holistic Approach

At the conference, NAREDCO leadership underscored that affordable housing cannot be addressed through isolated incentives alone. A holistic approach is required—one that simultaneously tackles land availability, financing, regulatory approvals, and buyer support.

Industry representatives pointed out that a significant portion of India’s urban population continues to live in inadequate or informal housing. Addressing this challenge, they argued, is not only a social imperative but also essential for sustainable urban growth.

Support for First-Time Buyers and Renters

One of the key expectations from Budget 2026 is renewed support for first-time homebuyers. Rising property prices and higher borrowing costs have made ownership increasingly difficult, particularly for younger and salaried households. Industry leaders suggested that enhanced credit-linked incentives and targeted subsidies could help bridge this affordability gap.

At the same time, attention is also shifting toward renters, who form a growing segment of urban residents. Experts believe rental housing schemes and incentives for affordable rental projects should be strengthened to provide dignified housing options for those not ready or able to buy homes.

Need for Regulatory Efficiency

Beyond financial incentives, developers stressed the importance of regulatory clarity and efficiency. Lengthy approval timelines, multiple clearances, and compliance costs significantly impact project viability in the affordable segment, where margins are already tight.

Streamlining approvals, adopting single-window clearance systems, and rationalising compliance requirements were identified as critical steps to reduce delays and bring projects to market faster.

Addressing Construction Costs

Rising input costs—ranging from raw materials to labour—have emerged as a major constraint on affordable housing supply. Industry participants urged the government to explore measures that could ease these pressures, such as tax rationalisation on construction materials or incentives for cost-efficient building technologies.

Reducing cost burdens, they argued, would directly translate into more affordable pricing for end-users.

Innovative Financing and Partnerships

Another major theme was the need for innovative financing mechanisms. Experts suggested that expanding access to low-cost funding, encouraging housing finance institutions to design flexible products, and leveraging long-term capital could help scale affordable housing supply.

Public-private partnerships were also highlighted as an effective tool to unlock land, share risk, and accelerate project execution—particularly in urban areas where land constraints are severe.

Economic and Social Impact

Stakeholders emphasised that affordable housing has a multiplier effect on the economy. It supports employment across construction and allied sectors, stimulates demand for materials, and contributes to more inclusive urban development.

From a social perspective, access to stable and affordable housing improves quality of life, health outcomes, and workforce productivity.

Looking Ahead to Budget 2026

As expectations build around Budget 2026, the real estate sector is looking for clear signals that affordable housing will remain a priority. Industry leaders believe that a well-calibrated mix of policy support, financial incentives, and regulatory reforms can unlock the next phase of growth.

If implemented effectively, these measures could help reset India’s affordable housing ecosystem and lay the foundation for a more balanced and resilient urban housing market.

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