India Budget 2026 Affordable Housing: Impact on Vizag Real Estate
By Eswari Group | February 3, 2026 | 5 Minute Read
The Union Budget is always a defining moment for homebuyers, and this year is no different. The India Budget 2026 affordable housing announcements have drawn mixed reactions across the real estate sector. While the Finance Minister presented a robust roadmap for urban development, many prospective buyers in Visakhapatnam are asking: How does this actually affect my dream of owning a home?
At Eswari Group, we have analyzed the fine print to help you understand the opportunities hidden in the new fiscal policies. From PMAY updates to infrastructure boosts in Tier-2 cities like Vizag, here is everything you need to know about investing in premium locations like PM Palem.
- PMAY Urban 2.0: A Silver Lining for First-Time Buyers
The biggest takeaway for the common man is the government’s continued focus on the Pradhan Mantri Awas Yojana (PMAY). The India Budget 2026 affordable housing allocation for PMAY-Urban 2.0 stands at a significant ₹18,625 crore.
While the industry hoped for a higher jump, this dedicated fund ensures that existing sanctioned projects will be completed faster. For buyers in Vizag, this signals better stability and government support for basic urban infrastructure, which indirectly boosts the value of established neighborhoods.
- Key Update: The subsidy mechanism has been streamlined to reduce delays.
- Impact on Vizag: Suburbs where housing demand is high will see faster development of roads and water supply, benefiting projects in areas like PM Palem.
- Infrastructure Push: The “City Economic Region” Advantage
Visakhapatnam, being a rapidly growing smart city, stands to gain immensely from the new “City Economic Region” (CER) initiative. The Finance Minister announced an annual allocation of ₹5,000 crore per CER, aimed specifically at Tier-2 and Tier-3 cities.
This is excellent news for investors. Better connectivity directly boosts property valuation. Flagship projects like Gayatri Meadows are situated in prime growth corridors (HPCL Layout, PM Palem) that will likely benefit from these urban planning grants, ensuring your investment grows over time.
Note: While tax breaks put money in your pocket today, infrastructure growth puts value in your asset forever.
- What the Industry Missed: The “Affordable” Definition
Despite the positives, the real estate sector was left wanting more regarding the definition of “affordable housing.”
- The Hope: An increase in the price cap from ₹45 Lakh to ₹60–75 Lakh to match rising construction costs.
- The Reality: The cap remains at ₹45 Lakh.
This means many quality homes in Vizag don’t qualify for specific “affordable” tax benefits. However, smart investors know that seeking value is better than seeking a small tax break. Projects like Gayatri Meadows offer spacious living (approx. 2100 sft) that far outstrips the “cramped” feeling of standard affordable units, providing a better long-term lifestyle.
- No Change in Section 24(b)
Homebuyers were eagerly awaiting a hike in the home loan interest deduction limit from ₹2 Lakh to ₹5 Lakh. Unfortunately, the India Budget 2026 affordable housing provisions did not include this change.
Our Advice: Don’t let this deter you. With property prices in Vizag steadily rising, the cost of waiting for a better tax regime is often higher than the tax saving itself.
Why Choose Gayatri Meadows in 2026?
Government policies will fluctuate, but the quality of your home should not. Gayatri Meadows by Eswari Group stands out as a prime example of why location and space matter more than temporary budget sops.
- Prime Location: Situated in the prestigious HPCL Layout, PM Palem, offering excellent connectivity to the National Highway and IT Hills.
- Spacious Living: Unlike standard budget homes, Gayatri Meadows offers expansive 3 BHK units (approx. 2100 sft), ensuring your family has room to grow.
- Verified Quality: We use premium materials that stand the test of time (and Vizag’s humid climate).
Ready to make your move? Visit our Contact Page to schedule a site visit to Gayatri Meadows today.
Frequently Asked Questions (FAQ)
Q1: Did the affordable housing price cap increase in Budget 2026?
No, the price cap for affordable housing remains unchanged at ₹45 Lakh in the Union Budget 2026, despite industry demands to raise it to ₹60 Lakh.
Q2: How does the India Budget 2026 affordable housing allocation help Vizag?
The budget allocates significant funds for PMAY Urban 2.0 and City Economic Regions. This boosts infrastructure in Tier-2 cities like Vizag, improving livability in key residential zones like PM Palem.
Q3: Is there any change in home loan tax benefits for 2026?
No, the deduction limit on home loan interest under Section 24(b) remains at ₹2 Lakh for self-occupied properties.
Q4: Can I still get a subsidy under PMAY in 2026?
Yes, the PMAY-Urban 2.0 scheme has received an allocation of ₹18,625 crore, ensuring that eligible first-time homebuyers can still avail of subsidies. Read more on the Official PMAY Website.
Q5: Why is Gayatri Meadows a good investment post-budget?
While the budget focused on smaller units, Gayatri Meadows offers premium value with large 2100 sft 3BHKs in a developed layout (HPCL Layout). The infrastructure push for Vizag will likely increase land values in this specific area, offering high appreciation potential.