_1769497338.webp)
Table of Content
- Why Is Budget 2026 Critical for the Real Estate Sector?
- Will Budget 2026 Revive Homebuyer Incentives?
- Should Affordable Housing Definitions Be Revised?
- Will Budget 2026 Rationalise GST on Housing?
- Will Budget 2026 Enhance Home Loan Tax Benefits?
- How Can Budget 2026 Improve Liquidity and Capital Flow?
- Should Real Estate Be Granted Industry Status?
- What Role Does Infrastructure Play in Budget 2026 Expectations?
- Will Budget 2026 Support Rental, Co-Working, and Industrial Segments?
- Conclusion
As the Union Budget 2026 approaches, India’s real estate developers, investors, and allied stakeholders are calling for targeted policy interventions to improve housing affordability, unlock liquidity, rationalise taxation, and support long-term urban growth. With rising land and construction costs and evolving buyer preferences, industry leaders say Budget 2026 is a crucial opportunity to realign housing policy with on-ground market realities.
From reviving homebuyer incentives and easing GST burdens to encouraging institutional capital and infrastructure-led development, the sector is seeking reforms that address both demand-side stress and supply-side constraints.
Why Is Budget 2026 Critical for the Real Estate Sector?
Real estate plays a pivotal role in India’s economic expansion, contributing significantly to GDP, employment, and urban development. However, stakeholders say affordability pressures, cost inflation, and regulatory complexities have begun to weigh on both buyers and developers.
Industry leaders believe Budget 2026 can help recalibrate housing policy in line with:
- Rising land and construction costs
- Shifts in buyer preferences towards quality and execution
- The growing importance of real estate as an investment asset
Also Read: Budget 2026: Homebuyers Seek Price Caps, Penalties for Project Delays
Will Budget 2026 Revive Homebuyer Incentives?
Push to Reintroduce CLSS and Buyer-Centric Benefits
Pradeep Aggarwal, Founder & Chairman, Signature Global (India), said extending and reintroducing the Credit Linked Subsidy Scheme (CLSS) could provide meaningful relief to first-time homebuyers and stimulate housing demand. He also suggested expanding the definition of affordable housing to include homes priced up to ₹1 crore, which would better reflect current market conditions and strengthen the ‘Housing for All’ vision.
Stakeholders emphasise that buyer-focused incentives under Budget 2026 would directly improve affordability without distorting supply dynamics.
Should Affordable Housing Definitions Be Revised?
Aligning Policy with Metro Market Realities
Several industry leaders highlighted that existing affordable housing thresholds are no longer practical, especially in metro cities.
Sudhir Pai, CEO, Magicbricks, said revising the affordable housing price cap in metros to ₹65 lakh and doubling the home loan interest deduction limit to ₹5 lakh could help convert stable demand into actual transactions.
Badal Yagnik, CEO & MD, Colliers India, added that standardising and revising affordable housing criteria to reflect Tier I city pricing realities could deliver a much-needed demand-side boost to residential real estate.
Will Budget 2026 Rationalise GST on Housing?
Industry Seeks Clarity and Cost Relief
GST remains one of the sector’s biggest concerns.
Sukhraj Nahar, President, CREDAI-MCHI, said the industry expects policy continuity and targeted interventions that boost buyer confidence, improve project liquidity, and ease redevelopment execution across the Mumbai Metropolitan Region. He also called for rationalisation of GST on under-construction homes and clarity on tax exemptions for affordable housing and real estate investments.
Prashant Sharma, President, NAREDCO Maharashtra, urged the government to rationalise GST on construction materials and provide clarity on input tax credit to ease cost pressures. He added that faster approvals, policy support for redevelopment, and incentives for sustainable and green developments are critical for long-term growth.
Will Budget 2026 Enhance Home Loan Tax Benefits?
Long-Standing Demand for Higher Deductions
Homebuyers and developers alike are pushing for enhanced tax benefits.
Dinesh Gupta, President, CREDAI West UP, said the government should increase tax exemption limits on home loan interest and provide greater relief under Sections 80C and 24(b). He also called for an easy and affordable funding mechanism for stalled projects.
Rakesh Reddy, Director, Aparna Constructions, added that enhanced home loan tax benefits, rationalisation of capital gains, and an updated definition of affordable housing are essential to sustain housing demand.
How Can Budget 2026 Improve Liquidity and Capital Flow?
Focus on REITs, Insurance Funds, and Institutional Capital
Ramesh Nair, CEO & MD, Mindspace REIT, said Budget 2026 should address structural liquidity and cost efficiency by increasing investment limits for insurance companies and encouraging provident and pension funds to allocate more capital to REITs. He also sought extension of input tax credit benefits to commercial leasing to improve cash flow visibility for office assets.
Manish Agarwal, MD, Satya Group and President, CREDAI Haryana, urged the government to improve capital availability, streamline regulations for high-value transactions, and encourage fractional ownership structures to support luxury housing demand.
Should Real Estate Be Granted Industry Status?
Recognition of Economic and Employment Impact
Harshavardhan Neotia, Chairman, Ambuja Neotia Group, said granting industry status to real estate would formally recognise its role in urban growth and employment generation. He emphasised sustained infrastructure investment as critical to expanding urban boundaries and easing pressure on city centres.
What Role Does Infrastructure Play in Budget 2026 Expectations?
Infrastructure-Led Urban Expansion
Ajay Chaudhary, Founder & CMD, ACE Group, said infrastructure-led growth and rationalisation of construction input costs are essential to support long-term urban development. He noted that premium and luxury homes now form a significant share of sales in major cities, reflecting a shift towards quality-driven end-user demand.
Shrinivas Rao, CEO, Vestian, stressed the need for accelerated development of Tier-2 cities through enhanced infrastructure, better connectivity, and increased private sector participation.
Also Read: Budget 2026: Experts Pitch Housing Credit Passport for Faster Loans
Will Budget 2026 Support Rental, Co-Working, and Industrial Segments?
Emerging Asset Classes Seek Policy Backing
- Murali Malayappan, CMD, Shriram Properties, said removing GST, restoring ITC, and eliminating stamp duty could significantly reduce apartment prices. He also called for incentives for rental housing and a uniform stamp duty framework across states.
- Paul Salnikoff, MD & CEO, Executive Centre India, sought targeted tax incentives for flexible and managed office spaces.
- Sanjay Chatrath, Co-founder, Incuspaze, called for lower GST on co-working services and full ITC on fit-outs and operating expenses.
- Yogesh Bhatia, MD & CEO, LML Realty, urged the government to promote plug-and-play industrial parks, shared infrastructure, and faster single-window approvals to support MSMEs and manufacturing.
Conclusion
Real estate stakeholders are not seeking short-term relief but structural, forward-looking reforms in Budget 2026. From affordability and taxation to liquidity, infrastructure, and investment flow, the sector believes balanced policy intervention can unlock sustained growth and restore buyer confidence.
If addressed holistically, Budget 2026 could strengthen real estate’s role as a key pillar of India’s economic and urban transformation.
_1769157929.webp)
_1769153080.webp)
_1769497338.webp)
Ans 1. Budget 2026 is seen as a crucial opportunity to address affordability challenges, rising construction costs, and liquidity constraints in real estate. Stakeholders believe targeted reforms can boost housing demand, improve capital flow, and support long-term urban growth.
Ans 2. Developers are seeking policy support to reduce costs, ease taxation, improve liquidity, and encourage institutional investments. Key expectations include GST rationalisation, faster approvals, better access to funding, and infrastructure-led development incentives.
Ans 3. Industry leaders are urging the government to reintroduce the Credit Linked Subsidy Scheme (CLSS) for first-time buyers. Restoring buyer-centric incentives is expected to improve affordability and stimulate genuine housing demand.
Ans 4. Yes. Stakeholders want affordable housing definitions to be revised to reflect current market realities. Proposals include increasing price caps in metro cities and standardising criteria across Tier I markets to ensure incentives reach genuine buyers.
Ans 5. Many developers and homebuyers expect higher tax deductions on home loan interest under Sections 80C and 24(b). Rising property prices and borrowing costs have made existing limits less effective, especially in metro cities.
Ans 6. The industry is seeking rationalisation of GST on under-construction homes, construction materials, and clarity on input tax credit. These changes could lower project costs, improve liquidity, and reduce final home prices.
Ans 7. Stakeholders are calling for higher investment limits for insurance companies, pension funds, and provident funds in REITs. Encouraging institutional capital and extending ITC benefits to commercial leasing could strengthen cash flows.
Ans 8. Yes. Granting industry status would formally recognise real estate’s contribution to GDP and employment. It could also improve access to institutional finance and reduce borrowing costs for developers.
Ans 9. Infrastructure-led development is a key demand. Enhanced connectivity, metro rail expansion, and investment in Tier-2 cities are expected to ease pressure on metros and support sustainable urban expansion.
Ans 10. Stakeholders are seeking incentives for rental housing, co-working spaces, managed offices, and industrial parks. Proposed measures include GST relief, stamp duty rationalisation, and policy support for plug-and-play infrastructure.
Ans 11. If buyer-focused reforms are implemented, Budget 2026 could improve affordability, increase tax savings, ensure better project execution, and restore confidence among first-time and end-user homebuyers.
Ans 12. The sector is looking for long-term, structural reforms rather than short-term relief. Balanced policies on affordability, taxation, liquidity, and infrastructure could position real estate as a stronger driver of India’s economic and urban growth.