Ahead of Union Budget 2026, the Indian real estate sector has called on the government to provide greater policy clarity and stability to sustain the current momentum in the housing market. Industry leaders believe that while housing demand has shown resilience, especially in premium segments, uncertainty around taxation, regulations and financing could slow long-term growth.
Developers have highlighted that affordable and mid-income housing continue to face challenges due to rising land prices, increasing construction costs and limited access to low-cost funding. These segments are critical for urban housing needs and first-time homebuyers, making policy support essential to maintain demand and supply balance.
A key expectation from Budget 2026 is clear and consistent tax policies, particularly around GST on construction materials and works contracts. The sector has also reiterated the long-standing demand for granting industry status to real estate, which could improve access to institutional finance, reduce borrowing costs and encourage greater transparency.
Affordability-related measures are also high on the wish list. Developers are seeking rationalisation of stamp duty, enhancement of home loan interest deduction limits and incentives that reduce the financial burden on homebuyers. Such measures, they believe, would directly boost housing demand and support end users.
Additionally, industry stakeholders have stressed the importance of continued infrastructure investment, as improved connectivity and urban infrastructure play a crucial role in unlocking new residential markets. Overall, the real estate sector expects Budget 2026 to deliver policy coherence that supports sustainable growth, affordability and long-term investor confidence.
