Budget 2026 is widely seen as a potential inflection point for India’s real estate sector, as the gap between the luxury housing market and a stressed affordable segment continues to widen. While premium and high-end homes have sustained healthy demand and capital inflows, the affordable and mid-income housing categories, crucial for first-time buyers and urban workforce housing, have come under pressure due to rising land and construction costs. Against this backdrop, developers closely watch Budget 2026 for policy signals that can restore balance to the housing ecosystem, revive affordability and support inclusive urbanisation, while preserving growth momentum in the premium and luxury segments.
 |
Pre Budget 2026
Deepak Kapoor, Director, Gulshan Group, says, “Housing developments that are quality-led and design-intensive operate on longer gestation cycles with higher capital commitment than mass housing. From Budget 2026, the sector’s key expectation is policy stability – predictable GST on construction inputs, clarity on works contracts, and uniform compliance norms. Granting real estate industry status will improve access to structured financing, enhance investor confidence, and enable the sector’s progression towards global standards and long-term value creation.”
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.
Saurab Saharan, Group Managing Director, HCBS Developments, says, “For the real estate sector, Budget 2026 is an opportunity to align policy with the sector’s economic weight finally. 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. 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.”
Rakesh Kaul, CEO & Managing Director, Ralith Realty, says, “Housing demand in India has always followed infrastructure. As we look towards Budget 2026, continued and targeted investment in connectivity, urban utilities and social infrastructure remains critical to unlocking new residential markets. When infrastructure planning aligns with housing supply, it not only improves liveability but also ensures more balanced urban growth beyond traditional city centres. A strong infrastructure push, backed by execution-focused reforms, can be the single biggest catalyst for the next phase of housing growth.”
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.”
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.”
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.”
Harjeet Singh Sahni, CMD, Solitairriann Group, says, “The commercial property market is moving on to a more complex plane where quality and operational efficiencies are more valued than mere size. Supportive policies, which are able to facilitate greater access to funding, provide rationalisation of taxes on materials used in the development process, and ease the approvals process, would enable developers to invest in the next generation of quality assets. Classification of the sector as an industry would facilitate greater institutional participation, which would help the real estate adhere to further its participation in the country’s growth.”
Goldi Arora, Co-founder & Managing Director of Property Master, says, “We expect the Budget 2026 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. If the Budget aligns tax policy with these emerging urban realities, it can create more predictable housing cycles rather than episodic spurts.”
Therefore, as Budget 2026 approaches, the real estate sector is seeking clear, forward-looking signals to bring coherence to housing, taxation, and urban development policies. The expectation is not for disruptive shifts, but for a calibrated framework that sustains market momentum, improves buyer confidence and supports India’s evolving urban growth story over the long term.
