Notably, demands for increasing the price limit for affordable housing have been raised by the real estate sector and homebuyers for a long time, and the government may address this through the budget.
The upcoming Union Budget 2026-27, to be presented on the floor of parliament on February 1, is likely to bring significant changes across several sectors, including the housing sector in the country. The budget is expected to bring significant relief to millions of people who are dreaming of buying a home. Along with boosting economic growth, this year’s Union Budget will also focus on the housing sector. One of the major decisions likely to be introduced includes a major change in the definition of affordable housing. It will make buying a home easier in metropolitan areas.
Notably, demands for increasing the price limit for affordable housing have been raised by the real estate sector and homebuyers for a long time, and the government may address this through the budget.
As per current regulations, homes and flats, which are priced up to Rs 45 lakh, get classified as affordable housing in India. Under this category, there’s a provision for a maximum of 60 square meters in metro cities and 90 square meters in non-metro cities. The limit has become impractical in recent times, given the significant increase in the cost of land, construction materials, and labour.
Homes in Cities Have Become More Expensive
According to experts in the real estate industry, market conditions were different when the government set the Rs 45 lakh limit in 2017. In the current scenario, it is challenging to find even a basic two-bedroom flat in major cities for less than Rs 70 lakh. Due to this issue, first-time homebuyers remain excluded from the affordable housing category and find themselves unable to benefit from tax exemptions and subsidies.
Potential Relief for Buyers
With the budget slated to be introduced, developers and buyers are urging the government to increase the maximum price limit for affordable housing to Rs 70-90 lakh. Once this change is implemented, it will not only provide significant relief to the middle class but also give a boost to the housing sector.
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