Union Budget 2026 expectations: What India’s real estate leaders want to sustain demand and urban growth
What is the real estate industry expecting from union budget 2026?
As expectations build ahead of the Union Budget 2026, the mood across India’s real estate sector is not one of noise, but nuance. After a period of steady recovery and resilient end-user demand, developers are no longer seeking short-term stimulus alone. What they desire now is policy consistency, execution efficiency, and structural support that allows cities to grow thoughtfully and housing to remain accessible.
Across India’s dynamic property markets—industry leaders echo a common refrain: housing affordability must be protected, approvals must move faster, and infrastructure must lead development rather than follow it.
Prashant Sharma, President, NAREDCO Maharashtra, captures the sentiment succinctly:
“The real estate sector continues to be a critical driver of economic growth, employment generation, and allied industries. In the upcoming Union Budget, the industry is hopeful of measures that further strengthen end-user demand, enhance affordability, and accelerate project execution.”
He reiterates a long-standing industry ask—now more relevant than ever:
“Granting infrastructure status to housing, especially affordable and mid-income segments, would significantly improve access to institutional finance and reduce borrowing costs for developers.”
Equally pressing is the need to modernise homebuyer taxation. Sections 24(b) and 80C, unchanged for years despite inflation and rising property values, are increasingly disconnected from market realities.
“Granting industry status to real estate is a game-changer. It will unlock institutional funding, reduce borrowing costs, and support affordable housing initiatives.
From a market advisory perspective, Mr. Kaushal Agarwal, Chairman, The Guardians Real Estate Advisory, points to the resilience of genuine demand:
“The market has demonstrated strong resilience over the past year, supported by steady sales across major cities and rising participation from genuine homebuyers.”
He emphasises that calibrated tax relief—rather than aggressive intervention—could meaningfully improve affordability:
“Enhanced deductions on home loan interest and principal, along with a relook at stamp duty and registration charges, could ease the cost of ownership and encourage first-time buyers.”
Developers operating in redevelopment-led and mixed-use markets stress the importance of execution efficiency. Shilpin Tater, Managing Director, Superb Realty, highlights rising construction costs and regulatory friction:
“Rationalisation of GST on key building materials and greater clarity on input tax credit are essential to ease cost pressures.”
He also draws attention to the evolving expectations from commercial real estate:
“Future-ready office spaces anchored in sustainability, employee well-being, and technology integration will define the next phase of urban workplaces.”
Infrastructure, however, remains the great enabler. Kamlesh Thakur, Co-Founder & MD, Srishti Group, offers a telling observation:
“As cities evolve, the focus must shift from mere connectivity to true accessibility.”
He underscores how projects like metro corridors and arterial road links unlock entirely new micro-markets by compressing travel time and improving livability.
Luxury and NRI-driven demand, once considered cyclical, has now emerged as structurally strong. Shraddha Kedia-Agarwal, Director, Transcon Developers, notes:
“Luxury residences, quality commercial assets, and India’s strong appeal among NRIs have emerged as important demand drivers.”
She calls for clarity on taxation and repatriation norms to sustain this momentum. “Tax incentives for green projects will not only make real estate sustainable but also attract environmentally conscious buyers.”
From plotted developments and second homes to redevelopment-led urban upgrades, the sector’s diversity is expanding. Mr. Gaurav Varma, Director, ORA Group, observes:
“Plotted developments and second homes are witnessing rising interest, driven by improved infrastructure and work-from-anywhere trends.”
Finally, addressing the transformation of ageing cityscapes, Dhruman Shah, Promoter, Ariha Group, highlights redevelopment’s role:
“Redevelopment projects have played a crucial role in upgrading ageing urban infrastructure and delivering high-quality urban living.”
Together, these voices reveal a sector that is not asking for shortcuts—but for clarity, continuity, and confidence. As Union Budget 2026 approaches, real estate leaders are united in their belief that thoughtful policy, infrastructure-led planning, and sustainable incentives can help Indian cities grow not just taller—but wiser.
Why is the real estate sector crucial to India’s economy?
Real estate isn’t just about bricks and mortar; it’s the backbone of India’s urban dreams. With over 8% contribution to the GDP and direct employment to millions, this sector fuels industries like steel, cement, and logistics. Isn’t it high time it got the attention it deserves?
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How Are Lending, Infrastructure, and Execution Shaping Real Estate Expectations for Budget 2026?
As conversations around Union Budget 2026 mature, a subtle but significant shift is visible in how industry leaders frame their expectations. The focus is moving away from demand stimulation alone, towards execution efficiency, funding stability, and infrastructure readiness—the quieter forces that ultimately determine whether real estate growth is sustainable or cyclical.
From the perspective of housing finance and non-banking lenders, Mehernosh Tata, MD & CEO, Godrej Housing Finance, offers a particularly grounded view of what the sector truly needs in 2026:
“India does not need a demand-led real estate revival in 2026; it needs a supply-side reset.”
He points out that while end-user demand has stabilised, the next phase of growth will depend far more on how efficiently projects are built, funded, and delivered, rather than on short-term consumption incentives.
“Housing projects run over several years, but financing often does not match this timeline, increasing execution pressure on developers.”
From a lending standpoint, the emphasis is clear: predictable, long-term funding across the construction cycle is critical. Measures that strengthen construction-stage lending and reduce refinancing stress can improve cash-flow planning, enable timely delivery, and reduce the stop-start nature of project execution.
Equally compelling is his emphasis on infrastructure as the sector’s most powerful multiplier:
“In practice, real estate growth has always followed infrastructure readiness, not incentives.”
Transit networks, industrial corridors, and planned urban expansion don’t merely support real estate—they create new housing markets that are easier to price, absorb, and scale. This reinforces a broader truth often overlooked in policy discussions: sustainable urban growth is built first on infrastructure, then on housing.
Importantly, Mr. Tata also highlights the role of state and municipal reform:
“Digitised approvals, clearer compliance timelines, and consistent development norms help improve capital rotation for developers and reduce carrying costs.”
As execution frameworks mature, they enable developers to plan launches with greater confidence, improving supply discipline and overall market health.
What’s changed since last year?
A year ago, conversations around the Union Budget and real estate were dominated by recovery. Today, as Budget 2026 approaches, the conversation has matured. The sector is no longer seeking revival—it is seeking reliability.
Here’s what has distinctly shifted since last year:
From Demand Push to Supply Discipline
In 2025, much of the industry discourse centred on stimulating homebuyer demand through tax incentives and subsidies. In 2026, the focus has decisively moved towards execution efficiency—how projects are financed, approved, built, and delivered. Developers and lenders alike recognise that sustainable growth cannot be driven by incentives alone.
Greater Emphasis on Long-Term Financing
Unlike last year’s emphasis on liquidity support, the current expectation is for stable, long-tenure funding, particularly for construction-stage lending. This shift reflects a deeper understanding of project lifecycles and the need to reduce refinancing stress that often delays delivery.
Infrastructure as the Primary Growth Engine
Infrastructure was always important—but in 2026, it has become central. Industry leaders now clearly articulate that real estate growth follows infrastructure readiness, not the other way around. Metro corridors, arterial roads, transit hubs, and planned city expansion are now seen as prerequisites, not add-ons.
Redevelopment and Urban Renewal Take Centre Stage
While greenfield development dominated earlier cycles, redevelopment-led growth has emerged as a major urban solution. Ageing housing stock, land scarcity, and infrastructure upgrades are pushing cities toward vertical renewal rather than horizontal sprawl.
A more mature, end-user-led market
Speculative buying has given way to genuine end-user demand. Buyers today are more informed, regulation-aware, and value-driven. Preferences have evolved toward better-designed homes, plotted developments, low-rise formats, and RERA-compliant projects.
Policy expectations have become more nuanced
Instead of sweeping reforms, the industry is now asking for predictability—clear GST treatment, faster approvals, consistent development norms, and policy continuity across states and municipalities.
The real estate sector has moved from recovery mode to foundation-building mode, where quiet structural improvements matter more than headline announcements.
Why Tier-2 and Tier-3 Cities Are Central to Budget 2026’s real estate agenda?
Beyond metro markets, expectations from Union Budget 2026 increasingly centre on balanced regional development—a theme closely aligned with India’s long-term urbanisation goals.
According to Jagadish Prasad Naik, CMD, DN Group, Odisha’s leading real estate developer:
“There is a strong need to decisively reignite economic growth through real estate and urban infrastructure in line with the Viksit Bharat 2047 vision.”
He underscores the importance of sustained investments in roads, metro rail, regional transit systems, and last-mile connectivity to unlock housing demand across fast-emerging Tier-2 and Tier-3 cities.
“By enabling developers to deliver quality homes within committed timelines, these reforms can ease pressure on major metros and catalyse the growth of new urban corridors.”
Such an approach not only spreads housing supply more evenly but also generates large-scale employment, strengthens buyer confidence, and deepens real estate’s contribution to GDP growth.
How Are Buyer Preferences and Market Structures Evolving Ahead of Budget 2026?
From the perspective of newer, design-led real estate ventures, the shift in buyer behaviour is equally telling.
Somesh Mittal, Co-Founder, One Prastha, observes that the market today is far more end-user driven, lending it stability and long-term credibility:
“Rising incomes, stable interest rates, and better-designed housing are strengthening affordability and genuine demand.”
He notes a growing preference for plotted and low-rise developments, driven by aspirations for flexibility, security, and long-term value appreciation. At the same time, increased participation from institutional investors, REITs, and NRIs—particularly in RERA-compliant assets—has reinforced transparency and trust.
However, he flags a persistent friction point:
“The absence of GST Input Tax Credit raises costs.”
As Budget 2026 approaches, expectations from ventures like One Prastha remain pragmatic—regulatory simplification and faster approvals, rather than dramatic intervention, would significantly improve project viability and execution confidence.
Why this budget conversation also reflects a shift in mindset
What unites these perspectives—from lenders to developers to new-age real estate ventures—is a deeper realisation: sustainable growth is rarely dramatic. It is built through discipline, predictability, and systems that work quietly in the background.
Much like the principles of long-term wealth creation discussed in financial minimalism and intentional money choices, real estate today benefits more from thoughtful structure than excess stimulation. Fewer shocks, fewer bottlenecks, and clearer rules allow both capital and cities to grow with confidence.
If Union Budget 2026 prioritises infrastructure-led city development, supports stable funding across the construction cycle, and accelerates on-ground execution reforms, it has the potential to move Indian real estate from a cautious recovery to a durable, scalable growth phase—one that is easier to build, easier to finance, and better aligned with India’s long-term urban story.
How are regional markets, borrowers, and Urban India shaping the 2026 Real estate narrative?
As the real estate conversation matures in 2026, the lens has widened beyond budgets and balance sheets to include regions, residents, and real lived experiences. The past year has revealed one consistent truth: real estate growth today is not uniform—it is selective, infrastructure-led, and deeply human.
Is NCR—especially Noida and Ghaziabad—emerging as a luxury growth story?
The NCR residential market, particularly Noida and Ghaziabad, is undergoing a decisive transformation, driven by strategic infrastructure investments and a recalibration of buyer aspirations.
According to Ashish Agarwal, Director, AU Real Estate, the upcoming Noida International Airport has fundamentally altered residential demand dynamics:
“The airport is a game-changer, drawing discerning homebuyers into the luxury segment.”
Noida has already witnessed around 10% capital appreciation, reflecting strong investor confidence and growing end-user demand. Luxury housing here is no longer aspirational—it is increasingly practical, combining global connectivity, lifestyle amenities, and long-term value.
Ghaziabad, meanwhile, is carving its own premium narrative. Enhanced road and rail connectivity, coupled with competitive pricing, is opening doors for high-quality, premium developments that appeal to buyers seeking value without compromising on accessibility.
What stands out is the resilience of the luxury segment itself. With consistent launches exceeding 9,000 units annually, affluent buyers continue to demonstrate confidence—even amid macroeconomic uncertainties. Developers are responding with thoughtfully designed luxury homes that balance connectivity, community living, and appreciation potential.
What are home loan borrowers looking for in Budget 2026?
Beyond cities and projects, real estate ultimately rests on individual decisions—often the most financially and emotionally significant ones people make.
From a borrower’s perspective, Pramod Kathuria, Founder & CEO, Easiloan, captures the mood succinctly:
“Budget 2026 should bring stability and clarity for residential borrowers.”
Infrastructure spending continues to underpin housing demand, but for first-time and end-use buyers, predictability matters more than incentives. Buyers are looking for consistency in tax provisions, interest-related benefits, and policy signals that allow them to plan for the long term without anxiety.
Initiatives that rationalise deductions and reduce policy volatility could quietly—but powerfully—strengthen buyer confidence. In many ways, this mirrors broader life decisions, where emotional security and clarity often matter more than short-term gains—much like the themes explored in when family hurts, a tale of love and loss, where stability becomes the foundation for healing and growth.
2025: What Did the Year Truly Teach the Indian Real Estate Sector?
Across markets and asset classes, 2025 emerged as a year of consolidation rather than experimentation.
A Market Driven by End-Users, Not speculation
Housing demand remained robust, especially in premium and luxury segments, supported by rising aspirations and favourable demographics. Mid-income housing held steady, aided by macroeconomic stability and improved affordability.
Speculation took a backseat. Branded developers, transparent governance, and delivery track records became non-negotiables.
Infrastructure rewrote urban geography
From Mumbai’s MTHL, metro corridors, and coastal roads to NCR’s airport-led transformation, infrastructure in 2025 did more than improve connectivity—it redefined liveability and value.
Multiple leaders, including Kamlesh Thakur (Srishti Group) and Vijay Choraria (Crest Ventures), noted a crucial shift: cities moved from focusing on distance to prioritising accessibility. Travel time, ease of movement, and integration with employment hubs became decisive.
Luxury, redevelopment, and new-age segments rose together
Luxury housing accounted for 20–22% of total residential sales value across major metros in 2025. Redevelopment emerged as a structural solution in land-constrained cities like Mumbai, now contributing nearly 40% of annual housing supply.
Commercial real estate, data centres, warehousing, co-living, and senior living also gained traction—signalling a market that is diversifying thoughtfully rather than expanding recklessly.
What does 2026 Promise—And what will it demand?
Looking ahead, industry leaders are remarkably aligned in their outlook.
Integrated Townships and Human-Centric Design
According to Shilpin Tater, MD, Superb Realty, real estate is no longer about assets—it is about experience-led ecosystems. Homes and offices are being evaluated on daylight, acoustics, wellness, and adaptability.
Research-backed design, AI-enabled building systems, and invisible technology will increasingly define performance and value.
Tier II & III Cities Step into the Spotlight
As noted by Kaushal Agarwal (The Guardians Real Estate Advisory) and Mr. Gaurav Varma (ORA Group), improved connectivity and affordability will propel cities beyond traditional metros into the next phase of growth. Plotted developments and gated communities are already seeing 25–30% year-on-year demand growth.
Sustainability moves from preference to prerequisite
Green buildings, ESG compliance, and energy efficiency are no longer differentiators—they are expectations. Institutional capital is increasingly aligned with sustainability-led projects, reinforcing long-term discipline in development.
In a world that often celebrates noise and speed, real estate in 2026 seems to be choosing thoughtfulness over haste—much like moments of reflection found in Pin Drop Silence, where quiet clarity reshapes perspective.
In Essence
From NCR’s luxury surge to Mumbai’s redevelopment wave, from borrower confidence to infrastructure-led planning, the journey from 2025 to 2026 reflects a sector growing wiser, calmer, and more deliberate.
Is Union Budget 2026 the moment India aligns growth with dignity, mobility, and sustainability?
As the calendar edges closer to Union Budget 2026–27, the mood across India’s cities, factory floors, hospitals, and housing sites feels quietly expectant. There is no clamour for dramatic announcements this time—only a collective hope that the budget will connect dots that already exist.
With real GDP growth estimated at a steady 7.4%, the question no longer is whether India is growing. It is how that growth is experienced—by the family buying its first home, the manufacturer upgrading a plant, the survivor reclaiming dignity after illness, or the entrepreneur building systems that move goods across the country.
When connectivity becomes destiny
Few ideas capture this moment better than the evolving meaning of infrastructure. Projects like the Delhi–Panipat–Karnal RRTS, a 130-kilometre high-speed corridor that will shrink travel time to 90 minutes, are no longer viewed merely as transport upgrades. They are social re-mapping tools, quietly redrawing where people can live, work, and belong.
Urban corridors once considered peripheral are beginning to behave like self-sustaining ecosystems—hosting homes, factories, logistics hubs, and services in closer proximity. This shift carries immense implications for housing affordability, industrial productivity, and quality of life.
For Ravi Saund, Founding Director of Emperium Group, Budget 2026 represents an opportunity to ease the pressure on overcrowded metros by leaning into this transition.
“Budget 2026 is an opportunity to push the decongestion of major metros by incentivising investment in emerging urban corridors,” he reflects.
“Rationalising GST or reintroducing input tax credit for under-construction homes would help early investors and support momentum in regions like Panipat and Gurugram.”
Yet connectivity alone does not make a corridor livable. Homes must remain attainable.
With the Cost Inflation Index rising from 240 in 2014–15 to 376 in 2025–26, the real value of tax relief on housing loans has steadily eroded. Updating Section 24(b) is less about generosity and more about restoring balance.
“Enhancing the home loan interest deduction limit from ₹2 lakh to ₹5 lakh would ease pressure on salaried households and help more families move from renting to owning,” Saund adds, grounding the Housing for All ambition in present-day realities.
Homes, but Also health and human recovery
Growth narratives often stop at assets—homes built, factories launched, corridors commissioned. But Budget 2026 is being watched just as closely for how it treats human recovery, not merely economic output.
In healthcare, this tension is particularly stark.
Dr. Debraj Shome, Senior Cosmetic Surgeon and Clinical Scientist at the QR678® Research Platform, raises an issue that sits at the intersection of medicine, mental health, and policy empathy.
“It is difficult to justify a framework where cancer treatment is recognised as medically essential, but a direct consequence of that treatment—chemotherapy-induced hair loss—is categorised as elective and taxed.”
For many cancer survivors, especially women, hair loss is not cosmetic—it is psychological, social, and deeply personal.
“International oncology literature clearly shows untreated alopecia is linked to depression, anxiety, and reduced treatment adherence,” Dr. Shome explains.
“Rationalising GST here would recognise recovery as both physical and psychological.”
It is a reminder that a developed economy is measured not only by output, but by dignity.
Factories that think beyond output
A similar recalibration is underway in manufacturing.
As global buyers demand sustainability benchmarks, Indian manufacturers—particularly MSMEs are not resisting the change. They are simply asking for predictability.
Solar infrastructure costs are expected to stabilise around ₹3.5 crore per megawatt, making renewable adoption increasingly viable. But intent alone does not build capacity.
Divyam Shah, Whole-Time Director and CFO of Euro Panel Products Limited, frames Budget 2026 as a moment to bridge ambition with execution.
“The upcoming budget is an opportunity to align industrial growth with environmental responsibility,” he says.
“Easing GST input credit hurdles and improving depreciation benefits would free working capital and allow manufacturers to scale sustainably.”
Echoing this, Neal Thakker, Founder & CEO of Magma Group, brings the focus back to the factory floor.
“Manufacturing growth today is less about announcing schemes and more about improving execution,” he observes.
“MSMEs need faster GST processes, easier working capital, and incentives to adopt energy-efficient systems that improve throughput without hurting margins.”
Here, sustainability is no longer an ideal—it is an operational necessity.
The Invisible Backbone: Logistics and Flow
None of this—homes, factories, healthcare—functions without logistics.
Ajay Rao, Founder & CEO of Emiza, points to the National Logistics Policy and PM Gati Shakti as critical enablers, but warns that momentum must be sustained.
“Continued capex across roads, rail, ports, and logistics parks is essential to reduce costs and improve efficiency,” he notes.
“Clarity on GST input tax credit for construction will unlock faster development of Grade A warehouses.”
Technology, green warehousing, air cargo, and cold-chain infrastructure are no longer optional—they are competitive differentiators.
Cities, capital, and confidence
Within real estate itself, leaders see continuity—not disruption—as the most valuable signal Budget 2026 can send.
Shivam, VP – Strategic Growth at Sattva Group, highlights how years of regulatory reform and infrastructure investment have built trust in organised urban development.
“Consistency and continuity in approvals, tax rationalisation, and infrastructure-led planning will strengthen affordability and long-term demand,” he says.
From the advisory lens, Nihar Jayesh Thakkar of The Mandate House reinforces the same theme.
“Rationalisation of stamp duty, clarity in taxation, and simplified compliance norms will significantly benefit both end users and investors,” he explains, adding that NRIs and institutions are closely watching signals around redevelopment and connectivity.
The thread that ties it all together
What emerges from these voices is not a pattern.
Across sectors, the ask is remarkably consistent:
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Less volatility
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Faster execution
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Clearer taxation
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Infrastructure that anticipates human movement
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Sustainability that strengthens, not burdens, competitiveness
Union Budget 2026 carries the weight of this moment. Not because it must transform everything overnight—but because it can align growth with lived experience.
When infrastructure shortens distance, when homes feel attainable, when factories modernise without fear, when recovery is treated with dignity—that is when economic growth becomes something people can actually live inside. And perhaps that is the quiet promise this budget is being asked to keep.
What is the current state of the real estate industry?
The Indian real estate sector stands at a crossroads. While strides have been made, some promises remain unfulfilled, casting a shadow over the ambitious vision of "Housing for All by 2022." The program aimed to deliver 20 million homes, but bottlenecks like funding gaps, slow project execution, and pandemic-induced delays derailed its progress.
Adding to the mix is the sluggish development of the Smart Cities Mission. With only a handful of projects meeting deadlines, the dream of smart, sustainable urban centers feels more like a distant reality. For many, the question remains: are these setbacks indicative of larger systemic issues?
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Why hasn’t the real estate sector been granted industry status? This query has been on the lips of developers for decades. Without this recognition, the sector struggles with higher borrowing costs, fragmented regulations, and limited access to institutional credit. Compare this to industries like manufacturing, which enjoy streamlined benefits, and the disparity becomes glaring.
Granting industry status could revolutionise the landscape, enabling developers to access low-interest loans and fostering investor confidence. The ripple effect? Affordable housing could become a reality rather than just a vision.
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Can tax reforms drive housing affordability?
Ask any homebuyer or developer, and they’ll tell you: tax reforms are the game-changers. Increasing the Section 24(b) deduction limit from ₹2 lakh to ₹5 lakh for home loan interest could offer a significant respite, especially in metro cities where property prices are skyrocketing.
Moreover, extending the Section 80-IBA benefits for affordable housing until 2029 would prioritize budget-friendly projects. A targeted reduction in GST on key materials like paint, sanitary ware, and ceramics could further reduce construction costs, directly benefiting homebuyers.
Navin Makhija – Managing Director, The Wadhwa Group
The current GST structure for real estate can feel like a labyrinth. Buyers of under-construction properties often face higher costs due to the absence of input tax credits. A simplified, uniform GST rate with input tax credit restoration could alleviate this burden.
Imagine this: a homebuyer opting for an under-construction property pays less GST, encouraging demand and boosting developer cash flow. Doesn’t that sound like a win-win?
Rohan Khatau, Director, CCI Projects Private Limited
What role does sustainable development play?
Green is not just a buzzword—it is a necessity. With India committed to carbon neutrality by 2070, the real estate sector must align itself with sustainable goals. The government could incentivize eco-friendly practices by offering tax rebates for green certifications and renewable energy integration in buildings.
Consider the potential of solar panels or rainwater harvesting systems becoming standard in housing projects. These aren’t just environmentally sound—they’re cost-effective in the long run. The question is, will this year’s budget take bold steps toward a greener tomorrow?
Vikas Sutaria, Founder, Iraah Lifespaces
Infrastructure-led growth
Special focus on second homes and luxury housing
Can infrastructure investments unlock new growth corridors?
Infrastructure is the backbone of real estate development. Think about it—what drives property demand in peripheral areas? ConnectivityTake, for instance, metro expansions in cities like Bengaluru and Mumbai. These projects have turned once-overlooked areas into real estate hotspots. By continuing to fund such initiatives, the government can stimulate growth not just in Tier I cities but in Tier II and III regions too.
Dhaval Ajmera, Director, Ajmera Realty Infra India
"The real estate industry looks forward to the next budget with high expectations for supportive measures to sustain growth. Key demands include deductions for first-time homebuyers, rationalized stamp duties, broader tax reforms, and reinstating the focus on an updated affordable housing definition. Providing tax clarity for SM REITs and incentivizing fractional ownership structures are critical steps to boost investment.
Reducing LTCG rates on property from 20% to 10% and lowering GST rates on under-construction properties and raw materials would ease financial pressures on developers and homebuyers alike.
Infrastructure projects like the Coastal Road, Metro expansion, and Navi Mumbai International Airport are set to decongest traffic, creating new residential and commercial hubs and driving property demand in the area. Such policies to develop infrastructure can foster favorable conditions and boost the real estate sector, enhancing investment potential in metropolitan areas.
Incentives for green and sustainable real estate initiatives and subsidies for affordable housing are anticipated to stimulate growth and support economic stability."
Is single-window clearance the need of the hour?
Developers often face delays due to cumbersome approval processes. Picture this: a project stuck in red tape for months, driving up costs and delaying delivery. A single-window clearance mechanism could solve this by streamlining project approvals and ensuring time-bound execution.
By reducing compliance burdens and clarifying land titles, this reform could attract domestic and foreign investment. Efficiency here is a necessity for growth.
Can REITs and rental housing reshape the market?
Real Estate Investment Trusts (REITs) have brought liquidity to Indian real estate. However, they are still underutilized. Offering tax incentives and making REITs more accessible to retail investors could deepen their market penetration.
On the other hand, rental housing has untapped potential. With urban migration on the rise, affordable rental housing complexes could cater to millions. What is needed? Policy support and tax benefits to make rental housing a viable option for both developers and tenants. The model tenancy law is still in limbo.
- Kuldeep Jain, Founder & CEO, Build Capital:
How can tax incentives boost home ownership?
Homeownership remains a distant dream for many due to high costs and taxes. Rationalizing stamp duties, which can go as high as 8-9% in some states, could make a significant difference. Additionally, increasing tax exemptions under Sections 80C and 24(b) would reduce the financial burden on first-time homebuyers.
Imagine a young couple in Delhi, currently paying exorbitant EMIs, finding relief through increased deductions. Such changes could spark a home-buying boom.
Abhishek Jain, COO, Satellite Developers Private Limited (SDPL) shares,
"Enhancing the tax deduction limit under Section 80C and Section 24(b) for home loan principal and interest repayment can significantly boost affordability and demand in the residential sector. This step is crucial to enable middle-class homebuyers to make their dream of owning a home a reality.
As urbanization accelerates, the need for affordable rental housing is more pronounced. The introduction of tax benefits for individuals and corporates investing in rental housing can support the government’s Rental Housing Scheme and promote organized housing options.
The announcement of funds for mega infrastructure projects such as metro expansions, high-speed rail corridors, and urban transport systems can enhance connectivity and unlock new real estate growth corridors.
To attract more institutional investments, we urge the government to introduce further tax benefits and incentives for Real Estate Investment Trusts (REITs) and Infrastructure Investment Trusts (InvITs)."
What should be done to promote PropTech adoption?
Technology is revolutionizing real estate, from AI-driven property listings to blockchain-enabled title verification. Yet, the sector has only scratched the surface. Allocating funds for PropTech innovations and offering incentives for tech adoption could bridge gaps in efficiency and transparency.
For example, virtual reality tours are reshaping the home-buying experience, but widespread adoption remains limited. A government-backed initiative could make such technologies accessible to all.
Addressing regional disparities in housing development?
While metro cities see rapid development, Tier II and III cities often lag behind. Encouraging private investments and tailored policies for smaller towns can address these disparities. Incentives for developers entering untapped markets and improving urban infrastructure in these regions can spark balanced growth.
Can the budget attract Foreign Direct investment (FDI)?
Foreign Direct Investment (FDI) has immense potential to propel India’s real estate sector to new heights. However, current regulatory bottlenecks and tax burdens deter many global investors. Simplifying FDI norms, offering tax breaks, and creating a transparent regulatory framework could make India a hotspot for real estate investment.
For instance, commercial real estate—especially tech parks and co-working spaces—has attracted significant FDI in recent years. Further reforms could accelerate investments, driving infrastructure growth and creating jobs. With India aiming to become a $5 trillion economy, global partnerships are essential.
How can sustainable development incentives transform real estate?
Sustainability is about future-proofing. Real estate is one of the largest contributors to carbon emissions, and adopting eco-friendly practices is no longer optional. Tax incentives for green certifications, subsidies for renewable energy integration, and relaxed norms for environmentally conscious developers could usher in a new era.
Consider this: a developer installing solar panels, using rainwater harvesting systems, and sourcing sustainable materials would not only lower operational costs but also attract environmentally conscious buyers. The upcoming budget should make such initiatives mainstream, aligning with India’s net-zero targets.
How will regional housing markets benefit from infrastructure-led growth?
The mantra is simple: build the roads, and real estate will follow. Investment in mega infrastructure projects like metro rail expansions, multimodal transport systems, and expressways can unlock peripheral areas for real estate growth. For instance, the success of Gurgaon as a real estate hub is rooted in its proximity to Delhi and seamless connectivity via the Delhi-Gurgaon Expressway.
Imagine similar stories in smaller towns and cities. The budget can catalyze this transformation by allocating funds to high-impact projects and ensuring timely execution.
What role does technology play in revolutionising the sector?
Real estate has embraced technology slowly, but the shift is undeniable. From AI-powered property management to blockchain-based land registries, technology is rewriting the rules. However, adoption is inconsistent and often limited to high-end developers.
The Union Budget could earmark funds for PropTech innovation and provide grants for pilot projects in digital transformation. Imagine a future where homebuyers complete transactions securely through blockchain or where AI predicts the next real estate boom. These aren’t distant dreams—they’re possibilities waiting to be unlocked.
Is there a case for tailored policies for second homes and luxury villas?
With affluent buyers eyeing second homes in destinations like Alibaug, Lonavala, and Goa, the luxury housing market is thriving. Tailored policies could boost this segment, making it easier for developers to cater to niche demands. Tax benefits for investments in high-end properties or simplified regulations for vacation homes could unlock this untapped potential.
Additionally, these homes often serve as revenue-generating assets through rentals, offering a win-win for owners and local economies.
Insights from global best practices
- Singapore: Streamlined approval systems and transparent regulatory frameworks have turned Singapore into a global real estate hub. India can learn from its model of efficient urban planning and strong government oversight.
- Germany: Germany’s focus on affordable housing through public-private partnerships has ensured housing availability across income groups.
- The UAE: Tax-free zones and infrastructure investment have made Dubai a magnet for global real estate investors. Could India replicate this model for select urban corridors?
The Union Budget 2026-27 is a pivotal moment for Indian real estate. Addressing long-standing demands—industry status, tax reforms, GST rationalization, and infrastructure investments—can unlock unparalleled growth. With the right mix of policies, the sector could transform into a cornerstone of India’s economic aspirations, providing affordable housing, fostering innovation, and driving sustainability.
This budget will be about redefining urban India. Will it rise to the occasion?
FAQs
What is the significance of the Union Budget for real estate?
How does GST impact real estate buyers?
GST adds to the cost of under-construction properties. Simplifying rates and restoring input tax credits could lower these costs.What are the benefits of granting industry status to real estate?
How can the government support sustainable housing?
By offering tax incentives for green certifications, promoting eco-friendly materials, and subsidizing renewable energy integration.What role does FDI play in Indian real estate?
About the Author
Tushar Mangl is an energy healer, Vastu expert, and author of Ardika. He writes on topics like real estate, personal finance, mental health, investments, and sustainable living, inspiring readers to create balanced lives.
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