Budget 2026 Real Estate Hopes: Affordability, Tax Rationalization, and More

Budget 2026 is drawing closer, and the real estate sector is bracing for policy continuity, targeted fiscal measures, and long-pending reforms to keep the sector on track. According to industry leaders, the upcoming Budget can help strengthen confidence across residential, commercial, and mixed-use projects by addressing housing affordability, infrastructure-led urban growth, access to capital, and faster regulatory approvals, as reported by ET.

Robin Mangla, President of M3M India, places real estate as a stable, long-term investment, despite ongoing global and domestic uncertainties. He emphasized the need for a predictable policy framework, particularly for premium housing and mixed-use projects. Mangla also expects tax rationalization for homebuyers, easier access to long-term institutional funding, and faster approvals through single-window clearances.

Sidharth Chowdhry, MD at Dalcore, also looks forward to policy continuity and selective fiscal support to sustain demand across premium and luxury housing markets such as Gurugram. He explained that rationalized stamp duty and better tax benefits on home loan interest could boost buyer sentiment. Low-cost, long-term financing would also help developers deliver quality projects.

For mid-income housing, Manoj Gaur, CMD of Gaurs Group, expects the Budget to focus on infrastructure spending and a supportive interest rate environment. He anticipates widening the scope of the EWS (Economically Weaker Sections) and PMAY (Pradhan Mantri Awas Yojana) schemes, restoring Section 80EEA benefits for first-time buyers, granting industry status to real estate, and introducing a single-window clearance system.

Dr. Gautam Kanodia, founder of KREEVA and Kanodia Group, stressed the importance of sustained infrastructure investment in the NCR (National Capital Region) and supportive liquidity conditions to drive the next phase of growth. Infrastructure spending remains central to expectations across allied industries.

Rajan Luthra, CFO of ACE-Action Construction Equipment Ltd, says that public capital expenditure continues to support economic activity and could revive demand for construction equipment. He pointed to private capital expenditure, exports, defense, and large infrastructure projects such as airports, railways, and freight corridors as key demand drivers. Luthra adds that GST rationalization, lower interest rates, and better liquidity could further boost investment and execution.

Mohit Goel, managing director of Omaxe Ltd, emphasized the need for long-term clarity rather than short-term stimulus. He noted strong potential in Tier 2 and Tier 3 cities, supported by urban infrastructure, better connectivity, and housing-linked development. Policies that support public-private partnerships, streamline approvals, and strengthen buyer confidence can help align private capital with development goals.

From an investment perspective, Binitha Dalal, founder and managing partner at Mt. K Kapital, highlighted the importance of fiscal discipline and measures that improve resilience to global shocks. For real estate, she points to the need for housing affordability, GST rationalization for construction and redevelopment, clearer REIT norms, and support for alternative capital pools. She also expects stronger incentives for green buildings and sustainable construction.

Amrita Gupta, director at Manglam Group, stressed the focus on affordability and sustainability, particularly in cities like Jaipur where demand is largely end-user driven. She said that a stable interest rate environment, incentives for green construction, and clearer redevelopment policies can support long-term housing demand.

Looking beyond traditional housing, Aditya Kushwaha, CEO and director of Axis Ecorp, noted growing interest in holiday homes, especially in destinations like Goa. He expects infrastructure development, tourism growth, and easier ownership norms to encourage greater NRI (Non-Resident Indian) participation.

Overall, industry expectations from Budget 2026 are modest. Rather than big-ticket announcements, the sector is looking for stability, smoother execution, and long-term clarity. With continued infrastructure spending, targeted fiscal support, better access to capital, and a focus on quality and sustainability, industry leaders believe real estate can continue to support jobs, urban growth, and economic development.