As the Union Budget 2026 draws closer, the real estate sector is outlining clear expectations from the government to address affordability challenges, rising construction costs, and the changing dynamics of urban housing demand. With residential prices climbing steadily across major cities and redevelopment emerging as a critical urban solution, developers are seeking policy measures that better reflect current land values, financing realities, and the scale of housing demand in high-growth corridors.
Industry leaders are particularly focused on revisiting affordable housing price thresholds, rationalising GST on under-construction homes and works contracts, and accelerating approvals and funding under PMAY-Urban. Alongside continued investment in metro rail, expressways, and urban infrastructure, these measures are seen as essential to unlocking stalled projects, improving housing supply, and supporting sustainable, long-term growth in Indiaās real estate sector.
Budget 2026: Industry Expectations
Mr. Aniruddha Mehta, Chairman and Managing Director, Umiya Buildcon
“The Union Budget 2026 is a key opportunity to strengthen Indiaās real estate sector, particularly as urban housing demand continues to rise, with double-digit price growth observed in major cities over the past year. For developers, policy measures that enhance housing affordability, reduce financing costs, and incentivize sustainable development will be critical to sustaining growth and meeting rising demand.
Increasing tax benefits on housing loans under Section 24(b) could ease financial pressure on homebuyers, while enhancing incentives under Section 80-IBA for affordable housing projects would encourage developers to expand inclusive housing supply, addressing a nationwide shortfall of several million units.
With interest rates stabilising and urban housing demand remaining robust, a well-balanced budget that supports both buyers and developers can unlock investment, boost employment, and contribute meaningfully to Indiaās infrastructure and economic goals in 2026.”
Mrs. Ankita Luharuka, CEO, Alliance City Developers
āBudgets play a critical role in shaping how cities evolve. For developers who works closely with redevelopment communities, clarity around approval processes, sustainability-linked incentives, and disciplined financial frameworks can go a long way in easing the transition from ageing housing to safer, more livable urban homes. A Budget that reinforces transparency and long-term planning does not just support the real estate sectorāit directly improves outcomes for residents who place long-term trust in the redevelopment process.ā
Mr. Shiv Garg, Director, Forteasia Realty Pvt. Ltd.
“The real estate sector is looking for a clear signal from the government regarding the alignment of tax policies with the new urban housing price realities as we approach Budget 2026. The existing limit of ā¹45 lakh for the ‘affordable housing’ category and the associated 1% GST benefit do not correspond to the land and construction costs in most of the development areas.
A realistic price bracket of ā¹80ā90 lakh and a reduction in GST rates on works contracts from 18% to 12% can lead to the revival of the projects which are stalled and also the opening up of a new supply pipeline. In addition to this, a higher allocation for PMAY-Urban, along with quicker approvals, will not only benefit the first-time buyer in India’s growing cities but also the entire housing sector as it will lead to more livable and ready-to-move-in homes.”
Mr. Aman Gupta, Director, RPS Group
“Budget 2026 is a crucial chance to make the homeownership situation in NCR and other high-growth areas much better by giving incentives to buyers, developers and lenders in a more unified way. The mid-income housing projects have a major share of users who are above the ā¹45 lakh affordable cap and, as a result, are not getting the benefit of the 1% GST and the tax incentives.
If the limit is raised to around ā¹90 lakh, the revival of the first-time buyer additional interest deduction like 80EEA, and easing of credit for developers, then there will be a significant reduction in the acquisition cost as well as the EMI burden.
When sustained investment in metro, expressway, and urban infrastructure is added to these measures, the demand for housing in the peripheral corridors will be met with faster sales and the sector will enjoy a stable, long-term growth.”
Mr. Pakshal Sanghvi – Managing Director of Sanghvi Realty
āAs the Budget approaches, real estate developers are closely watching how policy responds to the changing economics of urban housing. Construction costs, compliance requirements and capital costs have risen structurally over the past few years, while pricing power has remained selective. The next phase of growth will depend less on incentives and more on predictabilityāstable tax policies, faster approval frameworks and infrastructure-led planning. For developers, clarity is more valuable than concessions. A Budget that improves visibility on long-term urban development, financing access and execution certainty will help the sector plan responsibly rather than reactively.ā
Mrs. Ankita Luharuka – CEO of Alliance City Developers
āBudgets play a critical role in shaping how cities evolve. For developers who work closely with redevelopment communities, clarity around approval processes, sustainability-linked incentives, and disciplined financial frameworks can go a long way in easing the transition from ageing housing to safer, more livable urban homes. A Budget that reinforces transparency and long-term planning does not just support the real estate sectorāit directly improves outcomes for residents who place long-term trust in the redevelopment process.ā
Ms. Manju Yagnik, Vice Chairperson of Nahar Group and Senior Vice President of NAREDCO- Maharashtra
āThe real estate sector is looking to Budget 2026 for measures that can meaningfully expand homeownership and strengthen the residential ecosystem, particularly for first-time and mid-income buyers who are increasingly impacted by high property prices and borrowing costs. The recent repo rate reduction has provided a positive signal for the housing market, improving affordability and sentiment, and the Budget offers an opportunity to build on this momentum through targeted fiscal support.
A key expectation is a renewed focus on reducing the effective cost of home loans. Enhanced interest subventions, longer and more flexible loan tenures, and targeted incentives for first-time buyers can help convert lower policy rates into real EMI relief, especially in large urban centres where affordability remains stretched.
There is also a need to revisit housing incentive frameworks to align eligibility thresholds with current market realities. Updating income and property value limits in line with rising urban prices can ensure benefits reach genuine.ā
Mr. Anurag Goel, Director, Goel Ganga Developments
“For a rapidly urbanising India, this Budget needs to regard housing as essential infrastructure rather than a treatable asset class. PMAY-Urban 2.0 and a multi-lakh-crore commitment for urban housing have already announced the tremendous intent of the government, but now the policy fine-tuning is critical to the supply on the ground matching the intent.
Rationalising GST on under-construction homes, increasing the affordable housing price band, and extending the targeted tax deductions for end-users will make the projects workable and the homes available, especially in Tier 1.5 and Tier 2 cities which are becoming the employment hubs.
If Budget 2026 provides clarity and stability in these areas, the developers would surely invest in environmentally friendly, high-density and near-transport communities that would be supportive of India’s growth during the next decade.”
Mr. Siddharth Maurya, Founder & Managing Director, Vibhavangal Anukulakara Pvt. Ltd.
“Both investors and potential homeowners are considering Budget 2026 as a potential signal regarding the seriousness with which India views the speeding up of its ‘Housing for All’ and urbanisation policy. The request from the authorities is very simple: redefine affordable housing, give more precise and time-limited tax incentives, and make the 1% GST benefit applicable to a broader and more realistic price range in the major cities.
GST reduction on developers’ input services and works contracts will help cut costs and prevent low-quality construction. Higher PMAY allocations and ongoing investments in metro, regional rail and logistics infrastructure could make real estate an even more robust source of jobs, consumption and long-term wealth creation for Indian families.”
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