Budget 2026 Expectations: What India’s Real Estate Stakeholders Want

As the Union Budget 2026 approaches, India’s real estate sector is at a critical juncture. Developers, investors, lenders, and homebuyers are united in seeking policy clarity that can address affordability stress, rising construction costs, and liquidity constraints. With housing demand becoming more quality-driven and capital-intensive, industry leaders believe Budget 2026 has the potential to realign real estate policy with present-day market realities and support sustainable urban growth.

Real estate remains one of India’s largest employment generators and a key contributor to GDP. However, escalating land prices, higher input costs, and regulatory complexities are tightening margins and slowing new supply in several markets. Stakeholders believe Budget 2026 can help restore balance by supporting both demand and supply. The sector is not seeking short-term sops, but structural reforms that improve affordability, ensure liquidity, and enable long-term planning across housing, commercial assets, and infrastructure-linked development.

One of the strongest expectations from Budget 2026 is the revival of buyer-focused incentives. Industry leaders have highlighted the need to reintroduce schemes that directly improve affordability for end users. Extending support mechanisms for first-time buyers and recalibrating housing benefits in line with current pricing realities could help convert latent demand into actual transactions. Stakeholders believe such incentives would stimulate housing absorption without creating speculative excess.

A recurring concern across the sector is that existing affordable housing thresholds no longer reflect on-ground market conditions, especially in metro cities. Rising land and construction costs have pushed entry-level home prices well beyond earlier benchmarks. Real estate leaders have called for a revision in price caps to better align policy with urban realities. Updating these definitions could revive mid-segment demand and ensure that government incentives reach genuine end users rather than becoming irrelevant due to outdated limits.

Taxation remains a major pressure point for the real estate industry. Stakeholders are seeking clarity and rationalisation of GST on under-construction housing and construction materials. High indirect taxes increase project costs and ultimately impact home prices. Industry bodies have also stressed the need for clear guidelines on input tax credit, as uncertainty affects cash flows and pricing strategies. A more predictable tax framework is expected to improve project viability and buyer confidence.

Home loan tax benefits have not kept pace with rising property values. Developers and housing finance experts are urging the government to increase deduction limits on home loan interest and principal repayments. Enhanced tax relief could ease monthly outflows for buyers and support demand, particularly in the mid-income and premium segments. Stakeholders also believe that improved tax incentives could help stabilise residential sales during periods of price correction or interest rate volatility.

Liquidity remains a structural challenge for real estate, particularly for large-scale and long-gestation projects. Industry leaders are expecting Budget 2026 to facilitate greater participation from institutional capital, insurance funds, and pension funds. Encouraging investments in Real Estate Investment Trusts and improving tax efficiency for commercial assets could enhance cash flow visibility and reduce funding stress. Better capital access is seen as essential for both residential and office market stability.

Granting industry status to real estate has been a long-standing demand. Stakeholders argue that formal recognition would improve access to institutional finance and reduce borrowing costs. Alongside this, sustained infrastructure spending is seen as critical to unlocking new development corridors and easing pressure on congested city centres. Improved connectivity and planned expansion can support housing supply while maintaining liveability.

Beyond housing, emerging asset classes are also seeking targeted policy support. Rental housing, flexible workspaces, co-working centres, and industrial parks are gaining relevance as urban lifestyles and work patterns evolve. Industry leaders have called for rationalised GST structures, uniform stamp duty frameworks, and faster approvals to support these segments. Such measures could diversify real estate growth and strengthen India’s broader economic ecosystem.

Real estate stakeholders view Budget 2026 as an opportunity to introduce balanced, forward-looking reforms rather than temporary relief. Expectations span affordability, taxation, liquidity, infrastructure, and capital flow, all aimed at restoring confidence and enabling sustainable growth. If addressed holistically, Budget 2026 can reinforce real estate’s role as a key pillar of India’s economic and urban transformation.

As Budget 2026 approaches, real estate stakeholders are seeking structural reforms to address affordability, taxation, liquidity, and infrastructure challenges. Key expectations include revising affordable housing definitions, enhancing home loan tax benefits, rationalising GST, improving access to institutional capital, and supporting emerging asset classes. Industry leaders believe balanced, long-term policy intervention can restore buyer confidence, unlock investment, and strengthen real estate’s contribution to India’s economic growth and urban development.