Union Budget 2026 Real Estate Wishlists Decoded

Tanuj Shori, Founder and CEO, Square Yards

“The Indian housing market is clearly moving out of a luxury-led upcycle and into a more value-driven phase, with the mid-income segment poised to anchor growth as premium demand begins to stabilise. From the 2026 Union Budget, one should expect a sharper focus on improving affordability through enhanced tax relief for mid-income homebuyers, higher interest deduction limits and sustained investment in urban infrastructure. Equally important is policy support that encourages supply in the affordable and mid-market segments, as recent launches have been disproportionately skewed towards higher ticket sizes. A budget aligned to these realities can strengthen end-user demand; improve price-to-income dynamics and support a more balanced and sustainable phase of urban housing growth”.

Badal Yagnik, CEO & Managing Director at Colliers India

"Budget 2026 is expected to prioritize growth across economic sectors and usher in equitable real estate development through policy incentives and tax rebates. The Union Budget is likely to serve as a guiding tool balancing fiscal discipline alongside growth - keeping India globally competitive in key sectors including real estate.  Standardization and revision of affordable housing criteria to reflect price reality of Tier I cities can provide a demand-side boost to residential real estate. Also, supply side push through infrastructure augmentation and capacity building can trigger long-term growth levers across real estate segments. Furthermore, real estate democratization and retail investor participation can be encouraged by making REITs and SM-REITs more attractive. While Indian real estate is at the cusp of an accelerated growth trajectory across asset classes, the upcoming budget should incentivize sustainability adoption in built structures and holistically revitalize urban development plans. Most importantly, the budget needs to lay the foundation for sustained long-term growth, cushioning the impact of global volatility and trade frictions to an extent."

Vikas Bhasin, Managing Director, Saya Group

“As we look toward the Union Budget 2026, we hope the government continues to prioritize reforms that uplift the lives of our citizens through a stronger real estate sector. This industry is more than just numbers; it is the second-largest source of livelihoods in India. By supporting real estate, the government will be able to support the families and workers who build our nation, while providing stable, long-term security for those seeking a place to call home.

Our primary hope is that the government continues to invest in infrastructure that truly connects people - making our cities more livable, efficient, and accessible for everyone. Expanding programs like the Credit Linked Subsidy Scheme (CLSS) would be a compassionate step forward, making the dream of homeownership a reality for many more families.

From a real estate developer’s perspective, the upcoming Union Budget is a crucial opportunity to further strengthen home ownership, which remains both a basic necessity and a key national priority under the government’s vision of “Housing for All.” One of the long-pending expectations of the sector is the grant of industry status to real estate, which would improve access to institutional finance; lower borrowing costs, and brings greater transparency and professionalism to the sector. Affordability continues to be the biggest lever for demand, and the government can play a meaningful role by rationalizing or further reducing GST and stamp duty. Together, these levies add nearly 12–15 percent to the overall cost of home buying, significantly impacting end-user budgets, especially in mid-income and affordable segments. Any relief on this front would directly translate into improved purchasing power and faster decision-making.

Additionally, since a majority of homebuyers rely on housing loans to fund their purchases, there is a strong case for enhancing the income-tax deduction on home loan interest. With property prices and average loan sizes having increased substantially over the years, the current limits are no longer aligned with market realities. Increasing the deduction to at least Rs. 5 lakh would provide meaningful relief to buyers, improve EMI affordability, and give a sustained boost to genuine end-user demand across markets”.