Budget 2026–27: Support for affordable
housing is deeply disappointing - CREDAI Tamil Nadu
Habib WS
CREDAI Tamil Nadu President on Union Budget
2026–27
The Union Budget 2026–27 continues the government’s strong
commitment to infrastructure-led growth, which is clearly positive for the real
estate sector. The focus on building long-term economic capacity through
highways, metros, railways, logistics corridors and urban infrastructure—key
drivers of real estate demand and city expansion.
For Tamil Nadu, this sustained infrastructure push will improve
connectivity, activate new growth corridors, and support planned development
across Chennai, Coimbatore, Madurai and emerging cities.
The budget’s emphasis on ease of doing business through
faster approvals, streamlined processes and digital systems is also welcome.
These measures can reduce project delays, lower holding costs and improve
delivery timelines, benefiting both developers and homebuyers.
However, the complete absence of meaningful support for
affordable housing is deeply disappointing.
Rising land and construction costs, combined with an outdated
definition of affordable housing, are already pushing this segment to the
margins. Industry estimates indicate that affordable housing’s share of total
supply could fall from around 18% to nearly 12%, which should be a serious
cause for concern.
Affordable housing is not a welfare initiative — it is core urban
infrastructure. It supports employment, productivity and social stability.
Weakening supply will inevitably result in higher rentals, longer commutes and
the growth of informal housing, placing additional strain on cities.
The government must urgently revisit the affordable housing
framework, including definitions and incentives, to ensure that urban growth
remains inclusive, balanced and sustainable.
While the budget provides stability and continuity, addressing
affordable housing decisively will be critical to the long-term health of
India’s cities.
Habib WS
President,
CREDAI Tamil Nadu
