Real Estate Leaders Urge Green Incentives and Affordable Housing in Union Budget 2026
As the Union Budget 2026 draws near, real estate and infrastructure experts are offering a mix of cautious optimism and strong expectations for the sector. With global geopolitical uncertainties on the rise, particularly in light of recent developments in Venezuela, experts are emphasizing the need for fiscal resilience, support for domestic industries, and a focus on long-term sustainability. The real estate sector, in particular, is calling for policies that address housing affordability, green construction incentives, and long-term capital access.
Binitha Dalal, Founder and Managing Partner of Mt. K Kapital, outlined her expectations for the Budget. “As we head into the Union Budget, the broader macro environment remains cautiously optimistic. Growth momentum has held up well, inflation is relatively contained, and capital flows into India remain resilient. At the same time, global geopolitical uncertainty continues to rise. Recent developments involving Venezuela have again highlighted how quickly global events can disrupt energy markets, trade flows, and investor sentiment. The Budget should therefore strengthen India’s economic resilience through prudent fiscal management, support for domestic industries, and measures that cushion the impact of external volatility,” she stated.
For real estate, the focus should remain on structural enablers such as improved housing affordability, rationalization of GST on construction and redevelopment, and easier access to long-term capital. Continued investments in urban infrastructure and policy clarity on REITs, redevelopment, and alternative capital pools will support sustainable growth. A strong push towards green buildings through meaningful incentives for sustainable construction will also be critical in future-proofing the sector.
Mohit Goel, Managing Director of Omaxe Ltd., echoed similar sentiments, emphasizing the role of infrastructure in long-term growth. “From a real estate and infrastructure standpoint, the Budget presents an opportunity to deepen the momentum already visible across India’s cities. Continued focus on urban infrastructure, transport connectivity, and housing-linked development will be critical, especially as Tier 2 and Tier 3 markets emerge as the next engines of growth. Policy continuity, faster approvals, and incentives that encourage sustainable construction can significantly improve execution efficiency on the ground,” he noted.
The expectation today is not for short-term stimulus but for long-term clarity. Support for public-private partnership models, financing access for infrastructure projects, and measures that strengthen homebuyer confidence will help align private capital with national development priorities. A Budget that reinforces stability, rewards responsible development, and enables cities to grow in a planned manner will create lasting value for both the industry and the economy.
Amrita Gupta, Director of Manglam Group, highlighted the importance of end-user confidence and sustainable urban growth, particularly in cities like Jaipur. “As we approach the Union Budget, the real estate sector is looking for continued policy support that strengthens end-user confidence and encourages sustainable urban growth. Measures that enhance housing affordability, support redevelopment of ageing urban pockets, and incentivize green construction will be particularly impactful for cities like Jaipur, where demand is increasingly driven by long-term ownership and quality living,” she explained.
A stable interest rate environment combined with targeted incentives for sustainable development can further boost long-term demand. For developers, clarity and continuity in policy will help maintain momentum and deliver housing that aligns with evolving lifestyle and environmental priorities.
Aditya Kushwaha, CEO and Director of Axis Ecorp, emphasized the growth potential of the holiday home segment, especially in tourism-driven destinations. “With policy sentiment turning increasingly supportive, we are already seeing a positive shift in real estate confidence. We are optimistic that the upcoming Budget will build on this momentum through measures that strengthen housing demand, improve liquidity, and enable long-term investment,” he stated.
For the holiday home segment, especially in high-growth destinations like Goa, continued focus on infrastructure and tourism-led development can act as a strong catalyst. We also see significant potential in deeper NRI participation, supported by greater ease of ownership and simplified processes. Overall, any steps that enhance affordability and reinforce buyer confidence will further accelerate demand for second homes as both lifestyle assets and investment opportunities.
As the Union Budget 2026 approaches, all eyes are on the government's fiscal policies, which could shape the future of real estate and infrastructure development in India.
