As the Union Budget 2026 approaches amid global economic uncertainty, India’s real estate sector is calling for a decisive policy push to sustain growth, improve affordability, and deepen institutional participation. Industry leaders across residential, commercial, and alternative investment segments are urging the government to grant industry status to real estate, revise the definition of affordable housing, enhance tax relief for homebuyers, and accelerate infrastructure-led urban development—especially in tier-2 and tier-3 cities.

With housing demand shifting toward mid-income segments and private capital playing a larger role, stakeholders say the upcoming Budget will be critical in determining whether India can balance fiscal discipline with long-term urban and economic expansion.

Shrinivas Rao, FRICS, CEO, Vestian: “The Union Budget 2026 should prioritise strengthening India’s economic fundamentals to effectively navigate global uncertainties. Accelerated development of tier-2 cities through enhanced infrastructure and improved connectivity with major urban centres is imperative and will require increased private sector participation. Granting industry status to real estate would improve access to institutional financing and catalyse private investment. Further, monetising government land, refining the definition of affordable housing, and promoting mixed-use developments would support sustainable, inclusive, and efficient urban growth. Additionally, the introduction of a central-level GCC policy is essential to establish a structured framework and sustain the long-term growth of Global Capability Centres in India.”

Amit Goyal, Managing Director, India Sotheby’s International Realty: “This Union Budget comes at a critical moment, as a new global order is taking shape. India remains one of the fastest-growing major economies in the world, but the challenges are visible. The government will have to walk a fine balance between maintaining fiscal discipline to keep borrowing costs under control, while continuing to support growth and investment. Both are essential as India is to realise its ambition of becoming the world’s third-largest economy and a USD 5 trillion economy.

From a real estate perspective, the momentum of 2025 was unmistakable. However, for this momentum to sustain, buoyancy in the equity markets, which reflects overall economic strength, business investment sentiment, and foreign capital inflows must remain strong. It is imperative for the budget to announce measures that will encourage more FDI into the country.

Equally important are strong budgetary allocations for urban development. Improving liveability in Indian cities is no longer optional. We are battling multiple challenges simultaneously—air pollution, water quality, waste management, and urban infrastructure gaps. These are fundamental issues that directly influence quality of life, long-term investment confidence into real estate, and the sustainability of real estate growth. Addressing them meaningfully will be critical to supporting both economic expansion and India’s evolving urban aspirations.”

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.”

Ankur Jalan, CEO, Golden Growth Fund (GGF), a category II Real Estate focused Alternative Investment Fund (AIF): “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 prioritise 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 institutionalised 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.”

Lalit Parihar, Managing Director, Aaiji Group: “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 rationalisation 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.”

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.”

Suresh Garg, CMD, Nirala World: “Like every year, we have some expectations from the budget this year too. We hope the government grants the real estate sector the status of an industry. Additionally, we hope that the government increases the limit of home loan interest deduction from the current 2 lakhs to at least 5 lakhs. A 100% deduction would be even better.Apart from these, we have no other expectations from the budget.”

CREDAI West UP President Dinesh Gupta: “The real estate sector’s biggest expectation from the upcoming Union Budget concerns affordable and mid-income housing. He emphasized the need to increase the tax exemption limit on home loan interest, provide relief under Income Tax Sections 80C and 24(b), and create easier, cheaper funding arrangements for stalled projects. Additionally, concrete steps toward recognizing the sector as an organized industry, along with a clear policy on infrastructure status, would improve the investment climate. Resolving pending dues from development authorities could also give the real estate sector new momentum.”

Shailendra Sharma, Chairman, Renox Group: “The Union Budget should prioritise tax and EMI incentives for promoters and homebuyers respectively, who form the steady backbone of the real estate sector. Simplification of taxes, regulatory clarity, and long-pending reforms such as industry status, single-window clearance, and input tax credit can significantly boost project development across categories. Since infrastructure and real estate grow hand in hand, focused investment in industry and growth of social and urban infrastructure are essential to accelerate sustainable housing and commercial growth.”

Himanshu Garg, Director, RG Group: “The recent repo rate cut has created a positive atmosphere in the market, infusing new energy into the real estate sector. The upcoming central budget is expected to further strengthen this momentum. If the budget promotes affordable housing, increases the interest deduction limit on home loans, and focuses on infrastructure investment, it will boost buyer demand. Additionally, steps like granting industry status to real estate and single-window clearance will further bolster investor confidence. Overall, the budget will prove positive for the sector.”

Atul Vikram Singh, Founder, Vision Business Park: “This central budget is expected to bring policy stability and a long-term vision to the real estate sector. He stated that the tax structure should be simplified, especially for commercial and mixed-use projects. Incentives for REITs, office spaces, and business parks will boost both investment and employment. Additionally, making single-window clearance and approval processes digital and time-bound will accelerate project delivery.”

Lt. Col. Ashwani Nagpal (Retd.), COO, Diligent Builders Pvt. Ltd: “The Budget should introduce strong incentives for first-time homebuyers and a clear policy push to encourage development of both affordable and premium housing projects across the country. While a repo rate cut can support affordability, a dedicated national framework for housing development would create far greater impact. Broad policies are essential to rehabilitate the stalled projects. Promoters agreeing to Govt. approved policies and following norms of regulator must get facility of loan restructuring, easy funds and incentive on interest rate. Input tax credit could be a medium to meet this. Rationalised taxation, development-linked subsidies, single and time-bound project clearances could be true game changers in 2026.”

Pankaj Jain, Director, KW Group: “India’s real estate sector anticipates transformative reforms from Union Budget 2026 to boost growth and affordability. Key expectations include granting industry status, which will simplify regulatory processes, revising the affordable housing limit from the outdated ₹45 lakh to ₹75 lakh, and rationalizing GST on under-construction properties to enhance buyer confidence. Official industry recognition will ease bank loans, expedite environmental clearances, and provide labour law exemptions, similar to infrastructure sectors. This will address regulatory delays affecting 30% of projects, increasing supply in high-demand markets like NCR. Reducing the 18% GST on under-construction units to 5-12% will lower effective costs by 3-5%, boosting affordability and sales momentum amid urban migration.”

Ashish Bhutani, CEO, Bhutani Infra: “As we approach the Union Budget, the real estate sector looks forward to policy measures that further strengthen ease of investment, accelerate infrastructure development, and support sustainable urban growth. Continued focus on rationalising taxation, expanding metro and expressway connectivity, and incentivising green and wellness-driven developments can significantly enhance investor confidence. A stable, forward-looking policy environment will be key to unlocking long-term value across commercial and mixed-use real estate while supporting employment generation and economic momentum.”

Rajnikant Mishra, Founder and Chairman, Amrawati Group: “As we look toward the Union Budget 2026–27, there is a strong expectation that growth will be pushed beyond the metros and into tier two and tier three cities, where real demand is steadily building. These cities need more than housing announcements. They need sustained investment in roads, transport, drainage, and basic urban services so people feel confident about settling there long term. GST 2.0 has eased some pressure on construction materials, which has helped, but projects that are still under construction continue to face cost stress. Some rationalisation here would support price stability in emerging markets. Another area that deserves serious attention is labour and skill development. Construction today needs trained hands, not just manpower. Focused skilling programs and better worker support can improve quality, timelines, and safety while creating employment locally. A budget shaped by Nirmala Sitharaman that links infrastructure growth with workforce development can help tier two and tier three cities become the next engines of urban expansion.”

Mohit Mittal, CEO, MORES: “Budget 2026 should treat housing as a key part of India’s growth. Clear policies, support for buyers, and lower taxes will help the sector grow. Raising affordable housing limits, reducing GST and registration costs, and encouraging more investment will boost demand. Focus on Tier-II cities and faster approvals will increase confidence for buyers and investors. This approach will help the real estate sector grow steadily, benefit homebuyers, and ensure more people have access to quality housing across India.”