As the Union Budget 2026 approaches, voices from across India’s real estate ecosystem—from developers and institutional players to rental-tech platforms—are calling for targeted reforms to strengthen housing affordability, improve access to finance, and sustain long-term growth. Industry leaders emphasise the sector’s role as a major employment generator and economic multiplier, urging continued infrastructure investment, expansion of homebuyer incentives such as CLSS, rationalisation of taxes, and recognition of real estate as an industry.

With rising property prices, higher loan sizes, and evolving urban needs, stakeholders believe Budget 2026 is a critical opportunity to align housing policy with market realities while advancing the government’s ‘Housing for All’ and ‘Viksit Bharat 2047’ vision.

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 bring 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 rationalising or further reducing GST and stamp duty. Together, these levies add nearly 12–15% 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 ₹5 lakh would provide meaningful relief to buyers, improve EMI affordability, and give a sustained boost to genuine end-user demand across markets.”

Pradeep Aggarwal, Founder & Chairman, Signature Global (India) Ltd: “As we approach the Union Budget 2026, the real estate sector remains optimistic, with expectations focused on sustained policy support to improve housing affordability, ease liquidity constraints, and maintain long-term growth momentum. Continued government interventions through fiscal incentives, financing support, and demand-stimulating measures will be critical in strengthening end-user confidence and ensuring the sector’s steady contribution to the broader economic recovery.

The real estate sector currently contributes around 7 per cent to India’s GDP and supports over 200 allied industries. Granting industry status would improve access to institutional funding, reduce borrowing costs, and enhance transparency, enabling the sector to play a stronger role in job creation and economic growth. According to industry reports, real estate has the potential to contribute up to 15 per cent to India’s GDP by 2047, making it a key driver in achieving the vision of a ‘Viksit Bharat’ by 2047.

The extension and reintroduction of the Credit Linked Subsidy Scheme (CLSS) could provide meaningful relief to aspiring homebuyers, especially first-time buyers, while stimulating demand across various housing segments. Such measures would further strengthen buyer confidence and reinforce the sector’s role as a key contributor to economic growth.

Expanding the definition of affordable housing to include homes priced up to ₹1 crore would better reflect current market realities and reinforce the government’s ‘Housing for All’ vision. If implemented, such reforms could unlock significant growth potential, support sustainable development, and enable the sector to make a stronger contribution to the country’s broader economic goals.

Ashok Kapur, Chairman, Krishna Group and Krisumi Corporation: “As the Union Budget 2026 approaches, the government, with a focus on accelerating growth, is expected to introduce reforms aimed at improving efficiency across key sectors, including real estate. As a significant contributor to GDP and India’s second-largest employer after agriculture, the real estate sector is well-positioned to support overall economic activity, backed by steady end-user demand and long-term value creation.

We expect the government to maintain its strong focus on infrastructure development, given its multiplier effect on the economy and its role in improving connectivity, liveability, and urban efficiency. An extension and expansion of the Credit Linked Subsidy Scheme (CLSS) would provide significant relief to homebuyers. Policy stability and regulatory clarity will also remain important in reinforcing buyer confidence and encouraging disciplined, quality-led development across residential markets.

With sustainability becoming an increasingly important policy priority, incentives for green and eco-friendly housing could help accelerate responsible development practices. A continued emphasis on governance, design excellence, and sustainable urban growth will ensure that premium residential developments meet the evolving expectations of discerning buyers in 2026.”

Sarika Shetty, Co-founder & CEO, RentenPe: “As India moves closer to a formal, digitally accountable rental economy, Budget 2026 presents an opportunity to correct a long-standing gap in our credit system. Rent is the single largest recurring expense for urban Indians, yet verified rent payments remain invisible in formal credit assessment. With UPI-scale digital payments, evolving tenancy reforms, and consent-driven data frameworks already in place, recognising  rent as a legitimate credit signal is a logical next step in India’s financial evolution. Policy support for structured rent reporting, interoperability with credit bureaus, and regulatory safeguards, along with incentives for landlords and tenants to adopt digital rent payments, can unlock credit access for millions without increasing fiscal burden. Budget 2026 can be the inflection point where financial discipline finally translates into financial opportunity.”

Pawan Kumar Agarwal, Managing Director of NK Realtors: “With India’s GDP growth holding strong at over 8% and the nation on a clear trajectory to becoming the world’s third-largest economy by 2030, the real estate fraternity is no longer looking for mere survival tactics. Instead, we are looking for the strategic architecture that will support a $30 trillion economy by 2047. The year 2026 will focus on structural substance and not cyclical momentum. The current economic climate has revealed that while luxury and high-end products have been resilient, the ongoing challenges we face as an urban community are caused by systemic problems that have existed for almost a decade.

We strongly expect an increase in the tax deduction limit for home loan interest under Section 24(b). Raising this limit from ₹2 lakh to ₹5 lakh would provide much-needed breathing room for middle-class families facing the reality of higher EMIs. Furthermore, the reintroduction of incentives similar to Section 80EEA for first-time buyers would act as a powerful catalyst, converting fence-sitters into homeowners and ensuring that “Housing for All” remains a mission, not just a slogan.”

Mukul Bansal, Managing Director & Co-founder, Motiaz: “The real estate sector is anticipating targeted reforms to revive the affordable housing sector in the union budget 2026. Since 2017, the definition of ‘affordable housing’ has remained unchanged and is creating limitations on the supply of affordable housing because there are no longer any affordable land or material costs.

Increasing the limit of ₹2 lakh for home loan tax interest under the new tax regime to at least ₹5 lakh will help middle-class home buyers find relief and encourage home demand & market to ease inflationary pressure.

Furthermore, offering tax incentives for projects involving rental housing and green construction promote sustainable growth in the urban environment. The real estate sector currently accounts for about 7-8% of the national economy (GDP), but it will account for between 13%-15% in 2030.

Investing in infrastructure, particularly through the development of integrated township developments with mixed-use (residential, commercial and industrial) components, will be the primary source of economic activity in developing regions. Such developments will provide residents with better health, increased opportunities to connect with one another, and a more balanced lifestyle as members of the same community.”