With India’s Union Budget 2026 just around the corner, there is a noticeable buzz among homebuyers and property investors alike. This is not just about numbers on paper. For a lot of people, this directly affects whether buying a home feels possible or out of reach. It is about real people trying to buy homes in a market that has become more expensive over the years. Buyers are hoping this budget brings practical changes that actually make housing more affordable and realistic for families planning to own a home.
Bigger tax relief on home loan interest
One of the most common demands this year is around home loan tax relief. Right now, if you have a self occupied house, you can claim up to Rs. 2 lakh a year as a deduction on the interest you pay. The thing is, this number has been the same for a very long time.
In the real world, home prices and loan sizes have moved on but the tax benefit has not. For many buyers, especially in big cities, this limit barely scratches the surface of what they actually pay in interest every year. That is why people are hoping Budget 2026 finally updates this figure to match the reality.
In most metro cities, a standard home loan easily ranges between Rs. 60 lakh and Rs. 1 crore. With current interest rates, annual interest payments can cross Rs. 4 lakh or more. In such cases, the existing deduction limit feels inadequate.
Homebuyers want this limit to go up simply because it no longer matches what people are actually paying on their loans. If the deduction is higher, the tax saving is real and immediate. For salaried folks, that extra breathing room every month can make EMIs feel a lot less heavy.
Updating the affordable housing threshold
Another major issue is the definition of affordable housing. At present, homes need to fall within a specific price limit to qualify for benefits like lower GST rates or interest subsidies. These price caps were fixed years ago and have not kept pace with rising land prices and construction costs. In many cities, even modest homes now exceed the affordable housing limit. As a result, buyers who genuinely need support do not qualify for benefits because prices have moved ahead of outdated rules.
Buyers are hoping the government updates these limits, especially in big cities where prices have moved up a lot. A higher price cap would mean more families actually qualify for affordable housing benefits instead of missing out on them by a small margin.
Support for first time homebuyers
First time buyers are watching this budget very closely. Buying your first home usually means juggling rent, EMIs, family costs and savings at the same time.
Earlier, there were schemes like Section 80EEA that gave extra tax relief but those applied only to loans taken till March 2022. Anyone buying today does not get that benefit anymore. There is growing demand to reintroduce similar incentives. Even a limited benefit for first time buyers could encourage many hesitant families to take the step towards homeownership.
Improving project execution and delivery timelines
Beyond tax benefits, delays are a big worry for buyers. Even with RERA in place, possession dates still get pushed in a lot of projects. The worst part is paying rent and EMIs together while waiting, sometimes for months longer than promised.
There is hope that the budget will address funding and approval challenges that slow down projects. Easier access to finance for developers and stronger enforcement of timelines could help restore buyer confidence.
Creating a more balanced rental market
Not everyone wants to buy a home immediately. Renting continues to be a reality for a large section of urban India. Some experts have suggested tax relief on rental income to encourage homeowners to rent out vacant properties.
This could help increase the supply of rental homes and keep rents in check in high demand cities. A healthier rental market also gives people the flexibility to delay buying until they are financially ready.
What this could mean for homebuyers
If even some of these things make it into Budget 2026, it would genuinely help buyers. Better tax deductions mean less monthly strain, updated affordable housing limits let more people qualify for benefits and faster project delivery would take a lot of anxiety out of the buying process.
Bottom Line
Homebuyers are not asking for unrealistic subsidies. They are asking for policies that match today’s prices, interest rates and income levels. Budget 2026 has the opportunity to fix long standing gaps and bring real relief to people planning to buy homes.
Whether these expectations are met will become clear soon. But it is evident that housing expectations this year are grounded, practical and long overdue.
