As India’s Union Budget 2026 is just about to be announced, there’s a noticeable excitement among home buyers and investors. This is beyond just numbers on paper. For a lot of people this directly affects their decision to buy a residential property. This concerns individuals who are trying to buy a home in a market that has become more expensive over the years. Buyers are optimistic that this budget may bring some changes that will make housing more affordable for families planning to buy a home.

Bigger tax relief on home loan interest

Home loan tax relief is among the most common demands in the list this year. If you own an occupied home, you can claim upto 2 lakh a year as a deduction on the interest you pay. The problem is that this figure has not been changed for a very long time.

While the home prices and loan sizes have increased, the tax advantage remains the same. For buyers in the urban region, this amount barely touches the money they spend on the interest. This is why buyers are hoping that Budget 2026 may change this number.

In metro cities, a typical home loan ranges between Rs. 60 lakh and Rs. 1 crore. With the current interest rates, annual interest payment can exceed Rs. 4 lakh or more. Buyers want this limit to increase because this amount no longer matches what people are paying on their loans. If the deduction is higher the tax saving becomes real and instant. This extra breathing room can lighten the load of EMIs every month.

Revising the criteria for affordable housing

Another concern is how affordable housing is defined. Presently, homes need to fall in a specific price range to qualify for reduced GST rates or interest subsidies. These limits were set years ago and do not align with the rising land prices and construction costs. In many cities, even the most simple houses surpass the affordable housing threshold. Due to this, buyers who genuinely need support do not qualify for these benefits.

Buyers wish that the government updates these limits, especially in areas where prices have significantly increased. An increased cap would help more families qualify for the affordable housing benefits.

Support for first time home buyers

Buying your first home means juggling between rent, EMI’s, family expenses, savings etc.

Schemes like 80EEA give extra tax relief but they only apply to loans taken till March 2022. Anyone who is buying a residential property today does not get that benefit. Reintroduction of similar initiatives is the need of the hour. Even an introduction to a smaller benefit can encourage a lot of buyers to take a step towards homeownership.

Improving project execution and delivery timelines

Not just tax benefits, delays are a big worry for buyers as well. Even in the presence of RERA possession dates get pushed. This is the most difficult part: handling the rent and EMIs together while waiting for the possession.

There is a hope that the budget this year will handle funding and approval challenges that slow a project down. This could help restore buyer confidence in developers and builders.

Creating a more balanced rental market

Renting remains a reality for a large number of people living in urban areas as not everybody wants to purchase a house. It is being said that tax relief on rental income can encourage homeowners to rent their vacant property. 

This initiative may boost the availability of rental properties and maintain affordable rent in cities where the demand is high.

What this could mean to home buyers

If any of these reliefs make it to the budget 2026 then it would genuinely help buyers take a step towards their dream home. Home buyers want policies that match today’s prices, interest rates and income. Budget 2026 can fix these gaps and bring relief to the buyers.