Karnataka budget 2026-27: Subsidy hike and 50,000 new homes to fulfill housing dreams

CM Siddaramaiah announces major reforms in housing schemes, increased subsidies for SC/ST families, and new targets to deliver thousands of homes across Karnataka.

In a significant move to make homeownership more accessible, Chief Minister Siddaramaiah, in the 2026-27 Karnataka budget, announced increased subsidies and new housing targets under multiple state and central schemes. The subsidy for general category beneficiaries under housing schemes has been raised from ₹1.20 lakh to ₹2 lakh, while SC/ST beneficiaries will now receive ₹3 lakh, reinforcing the government’s commitment to inclusive housing development.

Since assuming office, the government has successfully completed the construction and handover of 4,19,454 homes across various schemes with an investment of ₹7,328 crore. For the current fiscal year, the administration aims to complete an additional 3 lakh homes. Moreover, the government plans to address pending approvals from previous administrations, completing the 4.90 lakh homes that had received clearances but no funding.

To further ensure housing for all, a new target of 1 lakh BLC-based homes has been approved. Beneficiaries for these homes will be selected through an online lottery conducted at village-level meetings, replacing the previous manual lottery system.

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Under the Pradhan Mantri Awas Yojana (PMAY-H), Karnataka’s Kolageri Development Board is implementing the construction of 1.29 lakh homes. An additional ₹1,136 crore has been allocated to accelerate this program, allowing 79,134 homes to be inaugurated for the 2025-26 fiscal year, providing permanent housing solutions to the residents.

Additionally, the government announced the creation of world-class sports infrastructure. The “KHB Surya Krida Gram” project in Anekal taluk, Bengaluru Urban district, will feature an international-standard stadium with an 80,000-seat capacity to host cricket matches and other international sporting events.

Through the KHB “Our Home” scheme, the administration also plans to distribute 50,000 residential units at concessional rates over the next two years, enabling more families to own homes at affordable prices.