Tamil Nadu realtors back infra thrust in Budget, flag affordable housing gap

 Chennai:
Tamil Nadu stands to gain from the Union Budget 2026–27’s continued emphasis on infrastructure-led growth, with sustained public investment expected to strengthen urban connectivity and open up new real estate growth corridors across the state, according to CREDAI Tamil Nadu.

The budget’s focus on highways, metro rail, logistics corridors and urban infrastructure could support planned development in Chennai, Coimbatore, Madurai and a clutch of emerging cities, helping align real estate expansion with long-term economic capacity, said Habib WS, president of CREDAI Tamil Nadu.

Developers also welcomed measures aimed at improving ease of doing business, including faster approvals, streamlined regulatory processes and wider use of digital systems. These steps could reduce project delays and holding costs, improving delivery timelines and offering greater certainty to homebuyers.

However, the industry body flagged concerns over the absence of targeted support for affordable housing. Rising land and construction costs, combined with what it described as an outdated definition of affordability, are pushing the segment to the margins. Industry estimates suggest affordable housing’s share of total residential supply could decline from around 18 per cent to nearly 12 per cent.

Affordable housing, CREDAI argued, is core urban infrastructure rather than a welfare measure, warning that constrained supply would drive up rents, lengthen commutes and fuel informal housing. A review of definitions and incentives, it said, is essential to keep urban growth inclusive and sustainable.