Affordable Housing stocks fall as Budget 2025 lowers capex to Rs 10.1 lakh crore in FY25

So far in 2025, stocks of GIC Housing Finance, Aavas Financiers, Aadhar Housing Finance dropped up to 7%

Stocks of affordable housing fell up to 3 percent as Budget 2025 lowered capex to Rs 10.18 lakh crore from Rs 11.11 lakh crore for FY25. HUDCO, Can Fin Homes, GIC Housing Finance, Aadhar Housing Finance fell up to 3 percent.

The government allocated Rs 11.21 lakh crore towards capex for FY26, marking 0.9 percent increase from FY25.

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However, the Budget missed addressing sector's demand for defining affordable housing price caps and the actual cost of homes in metro cities. Analysts had proposed increasing the house value cap under Pradhan Mantri Awas Yojana (PMAY) from the current Rs 35 lakh to Rs 50 lakh in metro cities.

On a different note, the segment also hoped that the government would review the home loan interest deduction limits. However, no announcement was made during the Budget presentation.

Having said that, the FM  announced that no income tax will be due for those with annual income up to Rs 12 lakh, among other changes in the tax slab. This will significantly boost disposable income, increasing affordability for homebuyers and driving real estate demand, said Pradeep Aggarwal, Founder & Chairman, Signature Global.

So far in 2025, stocks of GIC Housing Finance, Aavas Financiers, Aadhar Housing Finance, PNB Housing Finance, and LIC Housing Finance have declined by up to 7 percent, compared to a 2 percent drop in the benchmark Nifty 50 index.

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