Rakesh Reddy Aparna Constructions: Strengthening India's Real Estate with Budget 2026
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.
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.
