By Arosh John, Founder, John Real Estate (MahaRERA Reg. No. A51700001835) | Editor-in-Chief, Thane Real Estate News (TREN)
India | 5 February 2026
Budget 2026 Reality Check
Heading into Budget 2026, the real estate sector wasn’t looking for miracles—it was looking for execution levers: clearer taxation outcomes, cleaner transaction processes, faster approvals, and a policy stance that keeps demand stable without adding new friction.
This Budget largely follows that operating philosophy. Infrastructure remains the primary demand driver, a risk-sharing mechanism is proposed for big projects, CPSE asset monetisation gets a structured pathway via REITs, and select NRI-linked transaction compliance is simplified. Buyer-side tax “big upgrades,” however, still don’t arrive the way the industry expected.
The Industry Wishlist: Expectations Vs. Reality
Before the Budget, the sector’s wish list sounded consistent across developers, lenders, and industry bodies:
- Higher homebuyer tax benefits (especially long-stagnant deduction limits)
- GST clarity/rationalisation for housing and smoother input-credit visibility
- Affordable housing definition reset to reflect today’s metro pricing
- Redevelopment enablement through faster clearances and policy continuity
- Rental/worker housing support across major job hubs and transit corridors
The ask was demand-forward. The Budget response is more system-forward.
Decoding The Budgetary Signals: Beyond The Headlines
Infrastructure As A Demand Driver
The Budget continues the capex-led approach, with public capital expenditure proposed at ₹12.2 lakh crore. In real estate, this is the lever that quietly moves markets: mobility upgrades, stronger job corridors, and better absorption in connectivity-led micro-markets.
A Risk-Sharing Lever For Big Buildouts
The proposed Infrastructure Risk Guarantee Fund is aimed at reducing construction-phase risk and improving lender and investor comfort—particularly relevant for long-duration projects where funding confidence can influence timelines as much as approvals do.
CPSE Real Estate Monetisation Through Dedicated REITs
The proposal to create dedicated REITs for CPSE real estate asset recycling is a structural move worth watching. If executed cleanly, it can deepen institutional participation, improve transparency in monetisation, and support capital recycling into productive infrastructure and urban assets.
Visual Snapshot: Budget 2026 Signals For Real Estate (MMR/Thane Lens)
| Feature | Budget 2026 Signal | Impact On MMR / Thane |
|---|---|---|
| Capex Outlay | ₹12.2 lakh crore | Supports connectivity-led micro-markets and corridor demand. |
| TDS On NRI Deals | PAN-based reporting (no TAN), proposed effective 1 Oct 2026 | Reduces compliance friction; smoother high-value transactions. |
| Big Projects | Infrastructure Risk Guarantee Fund | Improves funding confidence for long-duration projects and townships. |
| Public Assets | Dedicated CPSE REITs | Supports institutionalisation and monetisation of commercial and urban assets. |
The Reality Check On PMAY-Urban
With an allocation of ₹18,625.05 crore for PMAY-Urban and PMAY-Urban 2.0, the government has signalled continuity rather than a “big-bang” expansion. This is calibrated rather than headline-expansive.
For Mumbai–MMR, that typically means the emphasis stays on completing and delivering existing pipelines, rather than a sudden influx of new subsidised inventory reshaping near-term pricing dynamics. The Budget framework also provides for the PMAY-U 2.0 interest subsidy component.
The “Fine Print”: Practical Compliance Wins For Homebuyers
A Quiet Win For NRI Transactions (Proposed Effective 1 October 2026)
One of the most practical—yet easily overlooked—changes is the shift that allows resident individuals and HUFs buying property from non-residents to handle TDS reporting using PAN without obtaining a TAN, proposed effective 1 October 2026.
This removes a real layer of compliance friction for individual buyers, and it makes NRI-linked purchases in globalised markets like Mumbai materially smoother.
Home Loan Interest: Cleaner Treatment Of Prior-Period Interest In The New Framework
Budget proposals also align the treatment of prior-period (pre-construction) interest within the new income-tax framework to reduce interpretational grey areas in common self-occupied home loan scenarios. It’s not a headline change—but it improves clarity for borrowers and advisors.
MMR And Thane Lens: What To Watch Next
Budget impact in MMR usually plays out through execution and capital flow, not overnight sentiment:
- Capex-linked corridors continue to attract end-user and investor interest
- REIT-led asset recycling can deepen institutional depth in urban real estate
- Compliance easing reduces friction in NRI-linked deals across Mumbai’s high-value transaction belt
Also READ: 10 Golden Rules for First-Time Homebuyers in Thane
About The Author
Arosh John is a MahaRERA-registered real estate professional (Reg. No. A51700001835), Founder of John Real Estate, and Editor-in-Chief of Thane Real Estate News (TREN). With over a decade of on-ground work across Thane and the Mumbai Metropolitan Region, he is known for decoding infrastructure-led micro-markets, redevelopment-driven supply shifts, regulatory decisioning, and capital-flow signals that influence pricing, absorption, and buyer behaviour. Through TREN, he publishes factual, market-relevant reporting designed to help buyers, investors, and developers make clearer, better-timed decisions.
Disclaimer
This article is published for general information and public-policy awareness. It summarises Budget proposals and high-level implications as understood on the publication date. It does not constitute legal, tax, accounting, financial, or investment advice. Budget provisions may be clarified, notified, amended, or operationalised through subsequent rules and official guidance. Readers should consult qualified professionals before acting on any information stated herein.
