Palladian Partners Advisory Ltd expects Budget 2026 to Centre on Affordability, Tax Alignment and Project Funding
Mumbai (Maharashtra) [India], January 23: As the Union Budget 2026 approaches, discussions around the real estate sector are increasingly focused on how existing policy frameworks align with current market conditions. While sustained public investment in infrastructure has supported housing demand in recent years, affordability and cost pressures remain key themes across segments. Real estate contributes close [...]
Mumbai (Maharashtra) [India], January 23: As the Union Budget 2026 approaches, discussions around the real estate sector are increasingly focused on how existing policy frameworks align with current market conditions. While sustained public investment in infrastructure has supported housing demand in recent years, affordability and cost pressures remain key themes across segments.
Real estate contributes close to 13 per cent of India’s GDP and supports over 50 million jobs. Industry observers note that premium housing and select Tier-II markets have shown resilience, even as rising land prices, labour costs and compliance expenses have made the mass and mid-income segments more sensitive to price movements.
One area under consideration is the definition of affordable housing. Homes priced below ₹45 lakh continue to qualify for incentives, but their share in overall residential sales has declined over the past five years in several urban markets. With input costs rising steadily, a review of price and size thresholds is being discussed as a way to better reflect present-day construction economics.
