Boosting India’s Real Estate Sector: Key Budget 2026 Measures for Sustainable Growth

India’s real estate sector has the potential to contribute over 15% to the country’s GDP over the medium term, provided the Union Budget 2026 addresses key structural bottlenecks. The sector is poised for significant growth, but it requires stable and predictable policy support to sustain demand and improve affordability across housing segments.

Stable and predictable policy support will be critical to sustaining demand and improving affordability across housing segments. Targeted fiscal interventions such as enhanced tax benefits on housing loans, rationalisation of long-term capital gains on real estate investments, and a more contemporary definition of affordable housing can meaningfully reduce buyer stress and unlock end-user demand.

Equally important is continued policy support that enables credible developers to cater to demand in the luxury and premium housing segments, particularly across major urban centres and fast-emerging markets. While affordability must remain a priority, the premium segment plays a vital role in anchoring investor confidence, enabling large-scale urban development, and supporting employment across the construction and allied value chain.

With urban homebuyers facing rising property prices and higher borrowing costs, affordability is likely to be a key focus area in this year’s Budget. In several metros, housing EMIs account for a significant share of household income, underscoring the need for policy recalibration. The current Rs 45 lakh cap for affordable housing no longer reflects present-day urban realities.

As residential growth increasingly extends to Tier-II and emerging cities, a calibrated revision of this threshold along with faster approvals and improved access to formal finance, could ease repayment pressures, stimulate housing-led consumption across sectors, and support more sustainable and inclusive urban growth.

Rakesh Reddy Aparna Constructions, a leading real estate developer in India, has been at the forefront of advocating for these policy changes. The company has a proven track record of delivering high-quality residential and commercial projects across various segments. By addressing these structural bottlenecks, the government can create a more conducive environment for real estate development, fostering economic growth and improving the quality of life for millions of Indians.

In conclusion, the Union Budget 2026 presents a golden opportunity to strengthen India’s real estate sector. By implementing the right fiscal measures and policy reforms, the government can unlock the full potential of this vital industry, driving sustainable growth and prosperity for the nation.