As Budget 2026 approaches, the real estate sector is closely watching whether tax incentives and a renewed infrastructure push can help revive housing demand and sustain market momentum. After a phase of steady recovery, demand has begun to moderate in select segments, prompting calls for policy support to boost affordability and buyer confidence.
Industry stakeholders are seeking tax breaks for homebuyers, including higher deductions on home loan interest and principal repayment. Clearer and more favourable capital gains treatment is also being discussed as a way to encourage long-term investment and reduce friction in property transactions.
On the supply side, developers are looking for GST rationalisation, especially restoration of input tax credit benefits for residential projects. Lower construction costs could translate into more competitive pricing and improved project viability.
Infrastructure spending remains a key expectation from the budget. Continued investment in metros, highways, urban transport, and regional connectivity has historically had a multiplier effect on housing demand by opening up new growth corridors and reducing commute times.
Economists caution that while tax relief can provide a short-term boost, sustained revival will depend on income growth, interest rate stability, and disciplined supply. Still, a well-calibrated mix of fiscal incentives and infrastructure investment in Budget 2026 could play a pivotal role in supporting homebuyer sentiment and ensuring balanced, end-user–driven growth in the real estate sector.
