As the Union Budget 2026 approaches, India’s real estate sector is calling for a calibrated mix of tax relief, regulatory clarity and sustained infrastructure spending to maintain housing demand and support long-term growth.

With affordability under pressure due to rising land, construction and financing costs, developers and industry bodies are urging the government to revisit homebuyer tax incentives, rationalise GST structures and update the definition of affordable housing to reflect current market realities. On the supply side, faster approvals, single-window clearances and clearer policy frameworks are seen as critical to improving project viability and attracting long-term institutional capital.

Beyond fiscal measures, stakeholders stress that continued infrastructure-led urban planning, especially improved connectivity and regional development; will be key to sustaining residential demand, unlocking new micro-markets and strengthening real estate’s contribution to India’s GDP in the years ahead.

Amit Modi, Director, County Group, says, The real estate sector is a major contributor to the country’s GDP. As a strong pillar of the Indian economy, the sector expects the government to address its long-standing demands in the upcoming budget. We anticipate that Budget 2026 will be less about subsidies and more about capital efficiency and policy certainty. Over the past two years, we’ve seen sustained demand in the ₹2 crore-plus segment, driven by end-users and HNIs viewing homes as long-term capital assets rather than discretionary purchases. What the sector now expects is clarity around long-term taxation, particularly rationalisation of capital gains timelines and indexation benefits, which directly influence holding behaviour in premium assets. Luxury buyers are not price-sensitive in the traditional sense, but they are highly sensitive to regulatory ambiguity. A stable tax framework allows developers to plan larger, low-density, high-design projects with longer gestation cycles. Budget 2026 has the opportunity to reinforce India’s luxury housing market as a credible, institution-friendly asset class, comparable to global residential investment destinations.

Sandeep Chhillar, Founder & Chairman, Landmark Group, says, “Ahead of Budget 2026, we expect the government to adopt a holistic approach. Enhancing tax incentives for individuals can strengthen housing demand, while rational taxation and policy clarity can enhance the viability of office and retail developments. Faster project approvals through a single-window clearance system remain essential to reduce cost overruns and execution delays. We believe a budget that balances buyer affordability, execution efficiency, and long-term capital deployment will not only improve project feasibility but also attract sustained domestic and institutional investment, creating a more investable real estate ecosystem.”

Rajjath Goel, Managing Director, MRG Group, says, “The real estate sector needs stability, clarity and speed. From Budget 2026, we expect predictable tax frameworks, a supportive interest-rate environment and a streamlined approval system that reduces delays and cost overruns. Today, friction at multiple stages, from approvals to financing, directly impacts project timelines and buyer confidence. Faster clearances and consistent policy signals will allow developers to plan better and deliver on time, while giving homebuyers the confidence to commit to long-term purchases. Rather than short-term announcements, the industry is looking for structural reforms that recognise housing as a long-gestation, capital-intensive sector and support sustainable, long-term growth.”

Ishaan Singh, Director, AIPL, says “We expect Budget 2026 to address the widening gap between housing prices and outdated tax thresholds. There is a strong need to revise income limits and enhance deductions under Section 80C, as current caps no longer reflect today’s loan sizes or market realities. Such a move will not only improve buyers’ affordability but also restore residential real estate’s attractiveness as a long-term investment asset. We also expect policy stability and supportive interest-rate signals, as both homebuyers and investors are increasingly sensitive to financing costs. Together, these measures can revive demand, improve absorption and reinforce housing as a stable, confidence-driven investment cycle.”

Gurpal Singh Chawla, Managing Director, TREVOC Group, said, “Infrastructure remains the single biggest value creator for real estate. We are witnessing its transformative capacity in NCR suburbs like Sonipat. When expressways, metro connectivity and social infrastructure move in sync, buyers naturally start eyeing the region from a new perspective. We are hopeful that, like the previous ones, the upcoming budget will sustain this capital expenditure momentum while also supporting easier credit flow through stable interest rates. Long-term infrastructure policy allows developers to plan better, unlock the potential of new micro-markets, and deliver projects that mature steadily rather than spike on speculative sentiment.”

Ankit Kansal, Founder & MD of Axon Developers says “Budget 2026 comes at a time when housing demand is expanding beyond primary residences into second homes, particularly in Tier II and III cities, where lifestyle-led living and remote work are reshaping buyer preferences. We expect the government to strengthen affordability by revisiting tax deductions and income limits that no longer reflect current price realities. Supportive interest-rate signals and continued infrastructure development will be critical to sustaining this momentum in emerging markets. Faster approvals through a single-window clearance system can also improve supply efficiency and delivery confidence.”

Umang Jindal, CEO, Homeland Group, said, “As we approach the Union Budget, the real estate sector is hopeful of policy measures that further strengthen housing demand and improve ease of development. Rationalisation of home loan interest benefits, continued focus on infrastructure spending, and incentives for affordable and mid-income housing will go a long way in boosting buyer confidence. A stable tax framework and support for sustainable construction will also help developers deliver quality projects while aligning with long-term urban growth goals.”

Saurab Saharan, Group Managing Director, HCBS Developments says, “For the real estate sector, Budget 2026 is an opportunity to finally align policy with the sector’s economic weight. One long-standing expectation is the grant of industry status to real estate, which would significantly improve access to organised financing and reduce the cost of capital, critical for large, design-led luxury projects with long gestation cycles. Today’s premium developments are not speculative assets; they are capital-intensive infrastructure plays that require policy recognition and institutional support. Alongside this, a single-window clearance mechanism would be transformational, reducing approval delays that often distort project timelines and pricing. The sector also looks forward to the creation of a dedicated revival fund for stalled projects at both the central and state levels, aimed at fast-tracking completion, enabling the timely delivery of homes and restoring buyer confidence. Luxury buyers value certainty as much as quality, and regulatory predictability directly impacts delivery confidence. A Budget that acknowledges real estate as a structured industry rather than a fragmented sector will strengthen investor trust and elevate India’s luxury housing ecosystem to global benchmarks”.

Yash Miglani, Managing Director, Migsun Group, said “Over the last few years, housing has proven its resilience, but keeping this momentum going will depend on how well policy keeps pace with market realities. From Budget 2026, we are looking for practical steps that genuinely improve homebuyer affordability, especially through higher tax deductions and more realistic income thresholds that reflect today’s housing prices. Supportive interest-rate signals will also be important in maintaining buyer confidence. On the supply side, single-window clearances remain critical, as approval delays continue to affect timelines and delivery certainty. Continued investment in infrastructure is equally important to open up new housing micro-markets within NCR and beyond, and support planned urban growth.”

Sanjay Sharma, Director, SKA Group, said that the real estate sector is looking at the Union Budget 2026 for meaningful reforms that enhance housing affordability. Rationalisation of stamp duty and simplification of tax structures can reduce the financial burden on homebuyers and support faster decision-making. Combined with continued incentives on home loans, these steps can strengthen end-user demand and ensure sustainable growth across the housing sector.

Ashok Singh Jaunapuria, Managing Director & CEO, SS Group, says, “As the housing market matures, we expect Budget 2026 to take a more buyer-centric view of policy design. Homebuyers today are financially aware and long-term in their outlook, yet many tax benefits and eligibility thresholds have not kept pace with rising urban housing prices. Revisiting ownership-linked tax incentives and improving affordability through financing support can significantly strengthen end-user demand. Equally important is easing approval bottlenecks through faster, more transparent processes, which ultimately improve delivery timelines and buyer confidence.”

Ashwinder R Singh, Chair, CII Real Estate; Vice Chair, BCD Group; Advisor, NAR-India – “The Budget can accelerate India’s housing cycle by improving affordability and reducing friction. Key expectations include a higher home-loan interest deduction, continued incentives for affordable housing, and faster approvals through digitisation and single-window timelines. A stable, predictable policy framework will be the biggest confidence signal for both consumers and investors.”

Ansal Housing, Director, Kushagr Ansal says, “If capital expenditure on urban infrastructure and transport networks is increased in Budget 2026, it will help sustain real estate demand over the long term. Markets such as NCR, Mumbai, and Bengaluru will benefit directly. Improved roads, enhanced metro connectivity, and multimodal transport systems give developers the confidence to launch projects in new areas while also expanding home-buying options for consumers.”

Mohit Batra, Regional Director, Realistic Realtors, said, The policy direction over the past few budgets has helped bring greater stability and transparency to the real estate sector, and we expect Budget 2026 to sustain this momentum. We implore the government to address housing affordability more realistically by revisiting tax deductions and income limits that no longer reflect current property values or loan sizes. Enhanced tax incentives can meaningfully ease the decision-making process for homebuyers and improve market absorption. Alongside this, a sustained infrastructure push remains essential to support urban expansion and unlock new housing markets. A Budget focused on infrastructure, execution efficiency and policy clarity can significantly strengthen the sector’s investability and long-term scalability.

Preksha Singh, CEO of Agrasheel Infratech, says, “Ahead of Budget 2026, we expect the government to focus on removing structural bottlenecks that slow down housing delivery. A single-window clearance system is one of the most critical reforms the sector is waiting for, as faster approvals directly translate into timely project execution and better cost management. On the demand side, we expect stronger tax incentives for first-time homebuyers, as they form the base of sustainable housing demand. There is also a clear opportunity to accelerate housing growth in Tier-2 and Tier-3 cities by combining buyer incentives with sustained investment in infrastructure and connectivity. To reduce pressure on metros, smaller cities and towns should see greater investment in quality schools, state-of-the-art sports facilities and other social infrastructure, enabling more balanced development and making Tier-2 and Tier-3 cities attractive investment destinations. If policy reforms, tax relief and infrastructure planning move in sync, the housing sector can unlock wider homeownership and more balanced urban growth.”

Harvinder Singh Sikka, Chairman, Sikka Group, says that ahead of the Union Budget 2026, the real estate sector is looking for stable and clear policy direction, as simplification of the tax structure, easier access to funding, and a more transparent and faster approval process would significantly boost the confidence of both developers and investors. He adds that policy certainty will encourage long-term investments, help reduce project costs, improve execution timelines, and strengthen liquidity for developers.pyram Additionally, incentives for affordable and mid-income housing could accelerate demand, while infrastructure-led development will further enhance the sector’s long-term sustainability and growth.

Bhupindra Singh, COO, RISE Infraventures, says “Budget 2026 needs to acknowledge how sharply buyer behaviour has evolved over the last few years. Ticket sizes, loan tenures and holding periods have all expanded, yet tax frameworks remain largely unchanged. Revisiting income thresholds, home loan deductions and capital gains taxation is critical to restoring affordability and rebuilding buyer confidence. The sector is also looking forward to a higher deduction for housing loans under Section 80C, a step that would go a long way in improving viability, especially in urban mid-segments. A major push to the affordable housing segment is equally important, as there continues to be a significant unmet demand. A calibrated approach to interest rates can further support demand without creating speculative excesses. What we are seeing on the ground is clear—buyers are value-conscious, long-term oriented and far more financially planned than before. Policy alignment with these realities can meaningfully improve purchasing power, unlock fence-sitters and bring stability to residential transactions.”

Viren Mehta, Founder & Director, ElitePro Infra says, “The industry seems to have gotten back on track, but going forward, only if the ownership base expands, meaning if the industry gets to serve more people and not just the high end, can it experience steady growth. More tax relief on loans for housing, particularly under section 80C, would be highly effective in benefiting the first-time buyer and upgrade cycles. Incentivising developers to venture into affordable housing also needs renewed attention in metro peripheries and tier-2 cities where demand is real but supply economics remain tight. Faster approvals and regulatory consistency will further improve execution quality and buyer confidence.”

Piyush Kansal, Executive Director, Royale Estate Group, says, “The upcoming Union Budget is expected to play a crucial role in sustaining momentum in the real estate sector. Measures such as enhanced tax benefits on home loans, continued infrastructure-led development, and simplified approval processes will encourage both end-users and investors. A strong focus on urban infrastructure and planned development will not only support housing demand but also contribute to long-term economic growth.”

Ashwani Kumar, Pyramid Infratech says, “Timely execution has become the defining factor for real estate growth today, and Budget 2026 must address the policy bottlenecks that slow it down. Demand exists, but approval delays continue to inflate project costs, disrupt timelines and impact delivery certainty. The introduction of a single-window clearance system remains a critical expectation, as faster approvals directly translate into better cost control and timely supply. Equally important is taxation relief for homebuyers. Rationalising tax policies and enhancing home loan-related benefits can ease the financial burden on buyers, while also improving market absorption. When streamlined approvals are combined with predictable taxation and supportive financing conditions, project viability improves, and pricing discipline becomes sustainable. A Budget that prioritises speed, transparency and policy clarity will allow developers to focus on building quality assets, while restoring buyer confidence and strengthening the overall housing ecosystem.”

Goldi Arora, Co-Founder & Managing Director of Property Master, says, “We expect the forthcoming Budget to be judged by how effectively it converts intent into on-ground housing momentum. Across markets, we see buyers delaying decisions not due to lack of demand, but due to uncertainty around approvals, financing and post-tax costs. Introducing a single-window clearance system would directly address execution risk, while better tax incentives for first-time buyers could unlock pent-up demand at the entry and mid segments. What is equally telling is the shift we’re seeing toward Tier-2 and Tier-3 cities, where infrastructure upgrades are already reshaping buyer behaviour. If the Budget aligns tax policy with these emerging urban realities and continues to push infrastructure-led growth, it can create more predictable housing cycles rather than episodic spurts.”