Finance Minister Nirmala Sitharaman’s latest Budget is a massive “all-in” on infrastructure. But it’s not for the big metro cities we all know. The government is pouring cash into the Tier-2 towns—places like Indore, Kochi, and Chandigarh—trying to turn them into the next big hubs. It’s a bold move, but it leaves a pretty big hole in the hearts of middle-class home buyers.
The plan is simple: if you build world-class roads and high-speed trains to smaller towns, people will move there. If you can get from a smaller, cheaper town to a big tech park in 30 minutes, you won’t pay 5 crore for a tiny flat in the city center. Also, the 2026 Budget is obsessed with “connectivity.” We’re seeing a flood of new airports and highways, which is great for land prices in the middle of nowhere, but it doesn’t help the person paying rent in a crowded metro right now.
While the government is busy celebrating new highways, the folks at CREDAI (the big real estate body) are looking at the fine print and frowning. Why? Because the “Affordable Housing” section was basically a ghost town. There were no new tax deductions for people taking out home loans. With the price of steel and cement going up, developers say they literally can’t afford to build cheap houses anymore. Without government support, the industry is moving toward luxury villas and premium apartments because that’s where the profit is.
In 2026, we’re seeing a “K-shaped” housing market.
- The Top: Luxury homes are booming for the ultra-rich.
- The Bottom: The “Affordable” dream is dying because it’s too expensive to build.
- The Solution? Move out. The Budget is essentially telling the middle class: “If you want a house you can afford, follow the new highway to a smaller city.”
The 2026 Budget is building the skeleton of a new India, but it’s forgetting to put a roof over the heads of the people already living there. It’s a “Visionary” budget for the year 2030, but a bit of a “Headache” budget for anyone trying to buy a 2BHK in 2026.
