As India prepares for Union Budget 2026, the real estate sector expectations are firmly anchored in policy continuity, fiscal rationalization, and structural reforms that can sustain momentum across residential, commercial, and affordable housing segments. After multiple years of steady demand recovery and regulatory maturity, industry leaders believe Budget 2026 presents a crucial opportunity to unlock the next phase of growth for the property market.
One of the foremost items on the real estate sector wishlist for Budget 2026 is enhanced tax relief for homebuyers. While housing demand has remained resilient, rising property prices and borrowing costs have increased affordability pressures. Experts are advocating for higher home loan tax benefits in Budget 2026, particularly an upward revision of interest deduction limits under Section 24(b).
Such a move could directly stimulate end-user demand, especially among first-time and mid-income buyers.
Another major area of focus is GST reform in real estate under Budget 2026. Developers continue to seek rationalisation of GST rates and the restoration of input tax credit, particularly for residential projects. Industry stakeholders argue that simplified GST structures would improve transparency, reduce project costs, and make housing more accessible. GST rationalization real estate demands Budget 2026 have therefore emerged as a consistent theme across expert voices.
Affordable housing remains central to the sector’s long-term vision. The affordable housing incentives in Budget 2026 are expected to play a decisive role in reviving supply in this segment, which has seen margin pressures over the past two years. Developers are calling for extended tax holidays, infrastructure status benefits, and continued interest subvention schemes to ensure viability and scalability.
Beyond taxation, the industry is also pushing for policy-level recognition. Granting industry status for real estate is viewed as a transformative step that could improve access to institutional funding and lower financing costs. Coupled with this, single-window approvals for real estate in Budget 2026 are being widely discussed as a way to shorten project timelines, reduce compliance complexity, and improve ease of doing business.
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From an investment standpoint, expectations around REIT tax exemptions in Budget 2026 and capital gains rationalization are gaining traction. A more favourable tax framework could deepen participation from domestic and global investors, especially in commercial and rental housing assets. Additionally, targeted urban infrastructure funding and real estate growth under Budget 2026 is expected to strengthen city-level housing demand by improving connectivity and livability.
“As we look ahead to Union Budget 2026, our expectations reflect both the challenges and opportunities in India’s real estate sector, particularly in established urban markets like Delhi, Mumbai, Bengaluru etc. We hope the Budget will prioritize measures that strengthen demand-side support, including extension of tax incentives for homebuyer, continued focus on infrastructure investment - especially in urban transport, last-mile connectivity and sustainable utilities that will be vital in boosting the attractiveness and long-term value.
We also seek policies that encourage institutional capital flows into real estate, such as enhanced incentives for Alternative Investment Funds in order to make it more attractive to investors. Such a move will streamline investments, make it institutionalized and regulated. A balanced, growth-oriented Budget will not only support project execution but also drive confidence among homebuyers and investors alike and boost the Indian economy.”
"We expect the Union Budget 2026 to further strengthen infrastructure-led urban development. Continued investment in roads, logistics, airport, bullet train, industrial corridors, and smart city infrastructure will be critical in unlocking the full potential of regions like Dholera as future economic hubs. We also hope for renewed policy focus on Special Economic Zones (SEZs), including greater flexibility and fiscal incentives for developers, to accelerate industrial and mixed-use developments in these regions.
We look forward to measures that support housing affordability, such as rationalization of GST, extension of tax incentives for homebuyers, and easier access to institutional finance for developers. Incentives for sustainable and green construction, along with faster approvals and reduced compliance burdens, would further improve project viability.
Overall, a balanced Budget combining fiscal discipline with long-term urban planning will help sustain real estate growth, boost investor confidence, and accelerate development across strategically important regions of Gujarat."
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“India’s real estate sector is beginning to show signs of slowdown in volume sales highlighting a structural supply gap—particularly in homes priced below Rs.1 crore, where demand remains strong. To address this imbalance, timely government intervention is essential. Incentives such as tax breaks, access to affordable land for developers, and supportive policies can help ensure that housing supply aligns with the price points where demand actually exists. Equally important are continued housing loan incentives and tax benefits for homebuyers to help cater to this demand segment which played a key role in driving robust volume growth over the past three years.
The past two years have witnessed exceptional growth in value terms, reflecting a clear shift towards premiumisation. However, this trend may prove unsustainable over the long term. With job losses in the tech sector, moderating income growth, and rising geo-economic and geopolitical uncertainties, risks to housing demand are increasing. While the office segment continues to see strong momentum, residential sales volumes have yet to keep pace - underscoring the need for a more balanced and inclusive growth strategy in the housing market."
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