With Union Budget 2026 approaching, attention is firmly focused on the Indian real estate sector, a key driver of economic growth, employment creation, and urban transformation. Pre-Budget Expectations Insights 2026 reflects a crucial moment for the industry as housing demand, real estate investment, and city-led infrastructure development gain renewed momentum.
From affordable housing and mid-income residential projects to commercial real estate and mixed-use developments, stakeholders are closely watching policy signals that could define the sector’s next growth cycle.
Industry experts believe India’s next real estate chapter will be shaped by supportive fiscal measures, rationalised taxation policies, improved access to housing finance, and sustained public spending on urban infrastructure.
Expectations are also high around reforms that strengthen homebuyer confidence, encourage institutional and REIT investments, and accelerate growth in Tier II and Tier III cities.
As the government balances fiscal discipline with long-term growth priorities, decisions taken in Union Budget 2026 will play a decisive role in shaping housing, investment, and urban development across India in the years ahead.
“As India prepares for Budget 2026, the focus is on easing pressure on household incomes while improving access to formal credit. A key lever is strengthening digital public infrastructure. An allocation of around Rs. 1 lakh crore under Digital India 2.0 - encompassing DigiLocker, the Account Aggregator framework, and fully agentless 24/7 Video KYC—can facilitate faster, safer, and more affordable loans and insurance. With Aadhaar-based KYC and consent-led data sharing already established, deeper investment can reduce processing delays, lower fraud risks, and cut delivery costs.
Housing remains a priority. The Rs. 45 lakh affordable housing cap no longer reflects urban market realities; revising it can lower EMIs and revive housing-linked consumption. For businesses, extending ESOP tax parity to Udyam-registered MSMEs would support talent retention and formalization. On taxation, while the New Tax Regime has raised the 30 percent slab threshold to Rs. 24 lakh, inflation continues to push professionals into higher brackets. Indexing the top slab to inflation or revisiting it could free up Rs. 2–3 lakh annually for savings and investments. This can be complemented by a flat deduction for long-term protection products—life insurance, health insurance, and pensions - without adding complexity. Collectively, these measures can enhance disposable incomes and align India’s credit and tax systems with current economic realities.”
Also Read: Union Budget 2026 Real Estate Wishlists Decoded
“India’s real estate sector operates in a tightly regulated environment, and what it needs most is policy stability and a long-term vision rather than short-term relief. With the Finance Bill 2026 being the last chance to set the stage before the new tax regime takes effect from April 1, the Budget must send clear, growth-oriented signals. Tier-2 cities across North India and NCR’s outer belt are emerging as key growth hubs, transforming into self-sustained residential and luxury clusters powered by major infrastructure upgrades.
Revising the affordable housing definition from Rs. 45 lakh to atleast Rs. 70–75 lakh, granting full industry status to real estate, and recognizing housing as a core part of national infrastructure will unlock institutional capital and significantly boost employment, with the sector contributing 7–8 percent of GDP, supporting over 5 crore jobs, and attracting NRI investments projected at 20 percent of sector inflows. Simplified tax structures, rationalized capital gains timelines with indexation, GST rationalization, uniform stamp duty, and enhanced home loan deductions will strengthen affordability and buyer confidence. Coupled with a single-window clearance system, upgraded PMAY Urban 2.0, and increased incentive-linked funding, these measures will accelerate project delivery, create jobs, and foster integrated, community-centric townships across emerging cities.”
“India’s urban housing market is undergoing a sharp shift, with affordability declining and premium demand rising. HNI and NRI buyers now contribute ~18–20 percent of property investments, up from 7–10 percent a decade ago. Affordable housing (below Rs. 45 lakh) has fallen from ~37 percent in 2021 to ~18 percent in 2025, while luxury homes (above Rs. 1.5 crore) have increased from 9 percent to 29 percent. This mirrors a 50 percent rise in average prices across top cities over five years—from Rs. 6,001/sq ft to Rs. 8,990/sq ft. With urbanization projected at ~9.2 percent CAGR through 2028, policy reforms are critical. The affordable housing cap must reflect evolving consumer patterns. Tax rationalization—including unified capital gains, GST reduction on under-construction homes from 18 percent to 12 percent (ideally 5 percent), and uniform stamp duty—can unlock liquidity. Enhanced benefits for first-time buyers by 15–25 percent, along with full industry and infrastructure status, would attract institutional investment.”
Also Read: 2025 Real Estate Wrap-Up: Growth Momentum Sets Stage for 2026
“Union Budget 2026 must decisively unlock the next phase of India’s real estate growth by strengthening infrastructure-led development in Tier 2 and Tier 3 cities. Continued investments in airports, highways, urban transit, and digital infrastructure across emerging cities are already shifting demand beyond metros and creating new growth corridors. However, complex regulatory frameworks, prolonged approval timelines, and fragmented land-record systems continue to delay execution, increase costs, and weaken buyer confidence. Limited market transparency and inconsistent valuation standards further affect advisory accuracy, particularly for first-time homebuyers and NRIs.
To address these challenges, the Budget should prioritize single-window approvals, faster and comprehensive land-record digitization, creation of a national real estate transaction database, and rationalization of stamp duty and transaction costs. Alongside sustained infrastructure investment, these reforms can enhance affordability, transparency, ease of doing business, and support balanced real estate growth across India.”
“Continued policy stability and growth-oriented incentives will be critical in supporting India’s fast-evolving rental and holiday-home ecosystem, especially in high-tourism coastal markets. With India’s beachside tourism gaining global traction, there is a strong opportunity to position such destinations as world-class residential-hospitality hubs. To sustain this momentum, we look forward to government policy support that recognizes the convergence of hospitality and residential real estate. Incentives around infrastructure financing, FSI flexibility, and hospitality-linked residential frameworks can unlock further investment, formalize the luxury rental market, and accelerate the development of high-quality, sustainable real estate.”
“As India prepares for the Union Budget, there is a strong opportunity to accelerate digital adoption across infrastructure projects to improve safety, quality, and resilience. India’s national highway network has expanded to over 1,46,000 km, marking a ~60 percent increase since 2013–14, driven by sustained public investment. However, challenges persist - 480,000 road crashes with multiple fatalities in 2023, along with incidents of urban flooding and structural failures in 2025, underscore the need for data-driven planning and maintenance. The allocation of over Rs. 48,500 crore for high-speed corridors in Bihar and adjoining regions in last year’s budget reflects the scale of ongoing reforms. Integrating digital tools, geospatial analytics, and predictive modelling across dams, highways, and urban infrastructure can enhance efficiency, resilience, and sustainability. We hope the upcoming budget promotes incentives and frameworks for digital engineering and open standards across the sector.”
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