As expectations build around the Union Budget 2026, the real estate sector is seeking policy continuity and targeted reforms to sustain its recent momentum and address long-standing structural challenges. Industry leaders believe that with the right mix of demand-side incentives, regulatory easing, and a strong infrastructure push, real estate can play an even more significant role in India’s economic growth story. The sector has demonstrated notable resilience in recent years, supported by steady demand, evolving buyer aspirations, and government-led initiatives. However, affordability continues to remain a key hurdle for a large segment of homebuyers. Expanding the definition of affordable housing in urban areas is widely seen as a move that could significantly boost end-user demand, particularly as residential real estate continues to be viewed as a long-term investment option. There is also a strong call for interest subsidies for first-time homebuyers who currently fall outside existing benefit frameworks, along with an increase in the home loan interest deduction limit to further encourage housing purchases. From a developer’s perspective, faster project approvals and rationalisation of GST on under-construction homes are considered crucial to reducing delays and improving execution efficiency. Granting industry status to real estate is another widely supported measure, as it could unlock access to more affordable financing and help streamline regulatory processes. Continued investment in infrastructure is also expected to support housing demand across regions. A growth-oriented Budget, stakeholders believe, could have multiplier effects across nearly 250 allied industries, driving employment and broader economic activity. Echoing the need for stability and long-term planning, industry voices stress the importance of consistent taxation policies, expanded access to institutional financing, and simplified regulations, particularly for luxury and branded residential segments. Sustained investment in urban infrastructure, mass mobility, and integrated city planning is seen as essential, given that connectivity and civic amenities directly influence the attractiveness of premium developments. Measures that promote formalisation and reduce compliance burdens are also expected to help the sector mature further and strengthen investor confidence. Institutional capital has emerged as another key theme ahead of the Budget. Strengthening demand-side support in established urban markets, alongside continued investments in urban transport and last-mile connectivity, is considered critical. There is also growing advocacy for enhanced incentives to encourage greater institutional participation in real estate, making investments more regulated, transparent, and scalable. Such a calibrated and forward-looking approach is expected to reinforce confidence across the value chain and further establish real estate as a key contributor to employment generation, capital formation, and India’s urban development journey.

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