Real Estate Sector’s Expectations for Budget 2026: Focus on Affordability, Tax Rationalization, and Key Demands

As the countdown to Budget 2026 begins, the real estate sector is urging the government for policy continuity, targeted fiscal measures, and overdue reforms to maintain momentum. Industry leaders believe that the upcoming budget could enhance confidence in residential, commercial, and mixed-use projects by addressing key issues such as housing affordability, urban infrastructure growth, access to capital, and expedited regulatory approvals. With ongoing global and domestic uncertainties, the sector is looking for a stable framework to foster long-term investment.

Call for Policy Continuity and Fiscal Support

Industry experts are emphasizing the importance of a predictable policy environment to sustain growth in the real estate sector. Robin Mangla, President of M3M India, highlighted that real estate remains a stable long-term investment option. He stressed the need for tax rationalization for homebuyers and easier access to long-term institutional funding. Mangla also advocated for faster approvals through a single-window clearance system, which could significantly streamline project execution.

Sidharth Chowdhry, Managing Director at Dalcore, echoed these sentiments, calling for policy continuity and selective fiscal support to maintain demand in premium and luxury housing markets, particularly in areas like Gurugram. He suggested that rationalizing stamp duty and enhancing tax benefits on home loan interest could positively influence buyer sentiment. Additionally, he noted that low-cost, long-term financing would enable developers to deliver high-quality projects.

Focus on Infrastructure and Mid-Income Housing

Manoj Gaur, CMD of Gaurs Group, expressed hopes that the Budget would prioritize infrastructure spending and create a supportive interest rate environment. He advocated for expanding the scope of the Economically Weaker Sections (EWS) and the Pradhan Mantri Awas Yojana (PMAY) schemes. Gaur also called for restoring Section 80EEA benefits for first-time homebuyers, granting industry status to real estate, and implementing a single-window clearance system to facilitate smoother project approvals.

Dr. Gautam Kanodia, founder of KREEVA and Kanodia Group, emphasized that sustained infrastructure investment in the National Capital Region (NCR) is crucial for driving the next phase of growth. He pointed out that supportive liquidity conditions are also essential for the sector’s development. The consensus among industry leaders is that infrastructure spending is vital for stimulating growth across allied industries.

Investment Perspectives and Sustainable Development

From an investment standpoint, Binitha Dalal, founder and managing partner at Mt. K Kapital, underscored the need for fiscal discipline and measures that enhance resilience against global economic shocks. She highlighted the importance of addressing housing affordability and advocated for GST rationalization in construction and redevelopment. Dalal also called for clearer norms for Real Estate Investment Trusts (REITs) and support for alternative capital pools, along with stronger incentives for green buildings and sustainable construction practices.

Amrita Gupta, director at Manglam Group, reiterated the focus on affordability and sustainability, particularly in cities like Jaipur, where demand is primarily driven by end-users. She emphasized that a stable interest rate environment, incentives for green construction, and clearer redevelopment policies could significantly bolster long-term housing demand.

Emerging Trends and Future Outlook

Looking beyond traditional housing, Aditya Kushwaha, CEO and director of Axis Ecorp, noted a growing interest in holiday homes, especially in popular destinations like Goa. He anticipates that infrastructure development, tourism growth, and simplified ownership norms will encourage greater participation from Non-Resident Indians (NRIs) in the real estate market.

Overall, industry expectations for Budget 2026 are modest. Rather than seeking large-scale announcements, the sector is looking for stability, smoother execution, and long-term clarity. With continued infrastructure investment, targeted fiscal support, improved access to capital, and a focus on quality and sustainability, industry leaders believe that real estate can play a pivotal role in supporting jobs, urban growth, and overall economic development.

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