Budget 2026: Prestige Estates, Oberoi Realty shares to benefit from incentives on affordable housing, says Axis Direct

The real estate sector, which contributes nearly 7% to GDP and employs over 7 crore, is likely to see major announcements in the affordable housing segment during the upcoming Budget 2026. According to Axis Direct, incentives such as lower stamp duty, raising affordable housing price limits, increasing tax deductions and rationalising GST on stamp duties could be unveiled for promoting affordable housing on February 1.

Axis Direct is positive on shares of Godrej Properties and Puravankara as it expects these real estate players to benefit from incentives on affordable housing.

The real estate sector is a key driver of economic growth and urban development. Industry leaders believe a supportive policy push in Budget 2026 could unlock the next phase of housing-led growth and affordable Housing for All.

FULL COVERAGE:  Union Budget 2026

Affordable housing remains a major concern for the real estate sector. Homes priced below Rs 50 lakh accounted for 54% of sales in 2018, but this share fell to 21% in 2025, with sales in the segment falling 17% year-on-year amid rising prices, falling incomes, and limited credit access.

The industry is seeking a rethink of PMAY 2.0 to revive demand. While the scheme offers a 4% interest subsidy, the current Rs 35 lakh house value cap excludes many urban buyers. Developers have urged the government to raise the limit to Rs 75 lakh or align it with RBI priority sector norms to reflect urban cost realities.

Axis Direct also expects a revision in home loan interest payment deductions from Rs 2 lakh to Rs 5 lakh  to improve affordability for end users. A revisit on tax holidays for affordable housing developers is also expected.

In the past, the government has taken steps including PMAY "Housing for All" and SWAMIH scheme for stalled projects. The brokerage expects future plans on the PMAY-HFA, which plans to provide affordable housing for all in urban areas. However, the brokerage expects fewer roadblocks rather than incentives for luxury projects.