As India approaches Budget 2026, the real estate sector has urged the government to introduce targeted tax relief and clearer policy measures to sustain growth and revive housing demand. Industry stakeholders believe that rising land prices, increased construction costs and limited tax incentives are putting pressure on project viability, particularly in urban markets.
One of the sector’s primary demands is a revision of the affordable housing price cap, currently set at ₹45 lakh. Developers argue that this threshold no longer reflects present-day property prices in metropolitan cities and have proposed raising it to ₹80–90 lakh. Such a revision would allow more homes to qualify for affordable housing benefits, encouraging both supply and buyer interest.
The industry has also called for GST rationalisation, including reducing GST on construction inputs and works contracts, which currently stand at higher rates. Lower input taxes could help developers manage costs and pass on benefits to homebuyers. Additionally, there is a strong push for renewed incentives for first-time homebuyers and mid-income segments, including enhanced home loan interest deductions and improved access to credit.
Beyond fiscal relief, developers have emphasized the need for policy clarity and long-term stability, especially in taxation and approval frameworks. Recognising housing as a key driver of economic activity and employment, the sector believes that well-structured reforms in Budget 2026 could unlock stalled projects, boost housing supply and support sustainable urban development across India.
