Navin Dhanuka, Director at ArisUnitern RE Solutions, said housing demand remains closely linked to financing conditions and household purchasing power. He noted that improved access to home loans, faster approvals, and rationalisation of taxes on construction inputs could strengthen buyer confidence.
“When combined with income-tax reforms that enhance household purchasing power, these measures can meaningfully unlock housing demand and support long-term, sustainable growth,” Dhanuka said.
Affordability through tax incentives remains a key concern for borrowers, particularly first-time buyers.
Bhavesh Kothari, Founder and CEO of Property First, said Budget 2026 offers an opportunity to strengthen home-loan-led demand by enhancing tax benefits and easing credit access. “Improved tax deductions on home loans, along with clearer financing norms and faster approvals, can unlock demand in emerging growth corridors, especially among first-time and mid-income buyers,” he said.
Rajiv Gupta, Managing Director of Wave Group, said enhanced tax benefits and rationalised stamp duties could help sustain buyer sentiment at a time when borrowing costs remain sensitive.
He added that increased allocations toward infrastructure and urban mobility would improve affordability over the long term by enhancing livability and connectivity.
Beyond affordability, experts say borrower behaviour itself has changed, increasing the importance of financing clarity.
Dipesh Garg, real estate advisor and co-founder of South Delhi 1, said 2025 marked a shift toward more cautious, end-user-driven demand.
“Buyers came better prepared. They asked tougher questions and walked away more often,” Garg said, adding that interest rates and construction costs have reduced speculative buying. He noted that end-users, particularly in mid-income and premium segments, now prioritise livability, delivery track records, and infrastructure over marketing claims.
This shift has implications for home loan demand in 2026, as buyers weigh long-term EMI commitments more carefully.
Garg said that in supply-constrained premium markets such as South Delhi, demand remains steady due to limited availability and aspirational value, but financing predictability has become critical. “Residential returns will favour patience over flipping, and credibility—not hype—will decide value,” he said.
From a taxation standpoint, personal finance experts believe there is scope to fine-tune tax rules to make homeownership more viable under the new tax regime.
Abhishek Soni, CEO and co-founder of Tax2win, said the new regime does not allow deductions for home loan interest or losses from house property, reducing the tax efficiency of owning a home. “This makes homeownership less attractive from a taxpayer’s perspective, especially for salaried individuals,” Soni said.
Soni added that allowing limited home loan benefits—particularly for first-time buyers—under the new tax regime could help balance simplicity with affordability. “Homeownership should not become tax-inefficient under a simplified regime,” he said.
Experts are also seeking a higher standard deduction, revisions to Section 80C limits, and a review of the rebate under Section 87A, arguing that existing thresholds have not kept pace with rising property prices and loan sizes.
Such measures, they say, could increase disposable income and improve EMI servicing capacity for middle-income households.
Developers in high-growth markets are further seeking buyer-centric measures.
Vikas Garg, Joint Managing Director of Ganga Realty, said enhancing tax benefits on home loan interest and principal repayments could help sustain end-user momentum. He added that continued infrastructure spending improves livability and investment appeal, particularly in markets such as Gurugram where demand is driven largely by genuine buyers.
From a financing perspective, industry participants highlight process friction as a constraint on housing demand. Bikash Kumar Mishra, CFO of Easy Home Finance, said documentation and verification delays continue to add uncertainty for borrowers. He said budgetary support for digital credit infrastructure and standardised verification could materially improve access to home loans without increasing systemic risk.
