NEW DELHI: The real estate sector is pushing for changes to the affordable housing definition, eased liquidity for buyers and developers and industry status in the upcoming Union Budget, amid sales pressure over the past year from soaring property prices.
Pradeep Aggarwal, Founder & Chairman, Signature Global (India) said that the extension and reintroduction of the Credit-Linked Subsidy Scheme (CLSS) could provide meaningful relief to aspiring homebuyers, especially first-time buyers, while stimulating demand across various housing segments.
Aggarwal added that expanding the definition of affordable housing to include homes priced up to Rs 1 crore would better reflect current market realities and reinforce the government’s ‘Housing for All’ vision.
“The real estate sector currently contributes around 7% to India’s GDP and supports over 200 allied industries. Granting industry status would improve access to institutional funding, reduce borrowing costs, and enhance transparency, enabling the sector to play a stronger role in job creation and economic growth,” stated Aggarwal.
Avneesh Sood, Director, Eros Group said that over the last few years, land prices, material costs, labour expenses and compliance requirements have all increased, and policies need to reflect this reality.
“Revisiting the affordable housing definition can help restart supply in urban and fringe markets where projects are no longer viable under old price limits. Clarity on REIT and InvIT taxation is important to attract long-term capital into commercial real estate and infrastructure assets. The sector also expects a clear GST roadmap to reduce cascading taxes, support for green steel and cement, and continued investment in urban infrastructure, such as water, drainage, and logistics parks,” said Sood.
Affordable housing in India generally means homes within reach of low-to-middle-income groups, defined by government schemes (like PMAY) by income levels, carpet area limits, and price caps (around Rs 45 lakh for metros/non-metros, varying by location).
Union Budget 2026-27, likely to be presented in the parliament on February 1, comes at a time when housing sales have seen a sharp dip, affected by ever-increasing property prices, layoffs in the IT sector, geopolitical tensions, and other uncertainties, Real estate consultant firm ANAROCK Research’s data indicates that housing sales in India’s top 7 cities witnessed a 14% decline in 2025, with 3,95,625 units sold in the year against 4,59,645 units in 2024.
Dhaval Ajmera, Director – Corporate Affairs, Ajmera Group said that the sector expects waiving off the cap currently placed on home loans and introducing tax benefits on the interest paid by buyers, irrespective of the ticket size.
“This will, in turn, be a mega-booster for the economy and will have a great run in the Indian real estate ecosystem... We look forward to a rationalisation of GST on residential projects and redefine the terminology of affordable housing from price-oriented to measurability, as this will be the last mile help in formalizing the Housing for All dream of the honourable PM,” added Ajmera.