Ahead of the Union Budget 2026, the Indian real estate sector has called for urgent policy and fiscal reforms to address a prolonged market slowdown. Developers and industry stakeholders say weakening demand, rising input costs and tight liquidity conditions are placing significant pressure on the sector, which remains a major contributor to employment and economic growth.
One of the key demands is granting industry status to real estate. Industry leaders argue that such recognition would improve access to institutional finance, reduce borrowing costs and bring much-needed liquidity to developers struggling amid subdued sales and cautious investor sentiment. Recent declines in realty stocks have further highlighted concerns over the sector’s short-term outlook.
The industry is also seeking simplified approval mechanisms, including single-window clearances and faster project permissions, to reduce delays that increase costs and impact project viability. Stakeholders believe that streamlining regulatory processes would improve transparency, accelerate construction timelines and restore buyer confidence.
Tax-related reforms are another major expectation from the upcoming Budget. Developers are urging rationalisation of GST on construction materials, enhancement of home loan tax deductions and clearer capital gains rules to improve affordability for homebuyers. In addition, the sector has requested a revision of the definition of affordable housing, stating that current price caps no longer reflect rising land and construction costs.
Industry representatives believe that targeted budgetary support and regulatory clarity from the Government of India could help revive demand, stabilise the housing market and position real estate as a stronger driver of economic recovery.
