India, Feb. 1 -- Finance Minister Nirmala Sitharaman will present Budget 2026 today, and the real estate sector is expecting a strong focus on affordable and rental housing. Industry stakeholders are seeking a broader definition of affordable housing, tax relief for homebuyers to improve affordability, and incentives for developers to encourage the construction of budget-friendly homes.

The current definition of affordable housing, unchanged since 2017, limits unit sizes to 60 sq metres in metros and 90 sq metres in non-metros, with a Rs.45 lakh price cap that no longer reflects rising land and construction costs, according to CREDAI, the apex body of real estate developers.

Adding to the challenge are multiple, inconsistent definitions...