The Indian real estate sector is looking towards the upcoming Union Budget 2026 with expectations of continued policy support and significant reforms. These anticipated changes aim to strengthen residential demand and accelerate urban development across the country.
In recent times, the sector has experienced stable growth, driven by robust end-user demand, improved affordability, and extensive infrastructure expansion. Developers across the industry consider the forthcoming budget to be pivotal for ushering in the next phase of real estate growth.
Key Demands for Homebuyers and Developers
Industry experts emphasize the government’s sustained recognition of housing as a crucial driver for economic development, particularly given the current stability in interest rates and resilient homebuyer confidence. Among the primary demands from the sector are enhanced tax benefits for homebuyers, a streamlined Goods and Services Tax (GST) framework for properties under construction, and increased budgetary allocations towards urban infrastructure and affordable housing initiatives.
A significant expectation centers on increasing the limit for interest deduction on home loans under Section 24(b). With the recent escalation in property values and construction expenses, developers contend that a higher tax deduction would directly benefit end-users and provide a substantial incentive for first-time homebuyers. Furthermore, greater clarity regarding GST input tax credit and a potential reduction in GST rates for under-construction homes are seen as measures that could significantly boost housing demand.
Vikas Garg, Joint Managing Director of Ganga Realty, highlighted that the forthcoming budget presents an opportunity to further solidify end-user demand in the housing segment. He expressed hopes that the government would consider revising the tax exemptions on both interest and principal payments for home loans, which have remained unchanged for an extended period. Garg underscored that buyer-centric policies and consistent policy stability, especially in rapidly growing markets like Gurugram where demand is largely from genuine purchasers, are essential for sustaining the positive market trends.
Emphasis on Infrastructure and Policy Stability
Investment in infrastructure remains a critical focus area for the real estate sector. Ongoing investments in highways, metro networks, expressways, and regional connectivity projects have substantially improved real estate prospects in emerging regions. Developers anticipate that an increased capital expenditure on infrastructure will not only stimulate housing demand but also foster the growth of commercial and mixed-use developments.
Garg further elaborated that robust infrastructure enhances connectivity, thereby improving urban livability and investment appeal, delivering long-term advantages for both developers and purchasers.
Saransh Trehan, Managing Director of Trehan Group, remarked that real estate has emerged as a robust pillar supporting the nation’s economic expansion. He suggested that the budget could further invigorate housing demand and infrastructure-driven development. Trehan’s expectations include the continuation of incentives for affordable and mid-income housing, alongside policies designed to improve the viability of real estate projects. He noted that simplifying compliance procedures and improving access to institutional financing would enable developers to deliver quality projects promptly while maintaining competitive pricing for buyers.
Trehan also stressed the vital importance of a stable policy environment and a long-term vision for maintaining investor confidence. He asserted that transparent tax policies and continuous urban infrastructure development are key to attracting both domestic and global investors to the Indian real estate market.
