Real Estate Sector Awaits Key Measures in Union Budget 2026-27
As the Union Budget 2026-27 approaches, the real estate sector is bracing for policy measures that can significantly boost the housing market. Industry leaders are urging the government to focus on enhancing affordability, accelerating project approvals, and investing in infrastructure to stimulate demand and attract investment. The real estate sector, a cornerstone of India’s economy, plays a vital role in employment generation, infrastructure expansion, and economic resilience. The upcoming budget is seen as a crucial opportunity to reinforce these contributions.
The real estate industry is hoping for a fiscal framework that supports affordability, faster approvals, and improved access to finance. Stakeholders are calling for a set of measures that can unlock demand across affordable, mid-income, and emerging urban markets, accelerate project execution, and position the sector for long-term sustainable growth. They believe that the right set of policy measures will help drive housing demand, stimulate project activity, and provide much-needed support to the sector, which has long been a backbone of India’s economy.
Manan Joshi, Founder of Sarvam Properties, emphasized that affordability remains a significant challenge for homebuyers. He urged the government to introduce measures that enhance tax incentives on home loans and provide related deductions. According to Joshi, tax relief aimed at reducing home loan interest, rationalizing GST for construction inputs, and expanding benefits for affordable housing will be crucial to stimulate demand and revive stalled projects. Such measures, he believes, would not only boost confidence in the market but also unlock growth in urban and emerging regions. Joshi added that a combination of tax relief, affordability measures, and growth incentives could help sustain the sector as a key driver of employment and economic activity.
Navin Dhanuka, Director of ArisUnitern RE Solutions, highlighted the importance of a stable and forward-looking policy framework. Dhanuka stressed the need for measures prioritizing infrastructure development, ease of execution, and regulatory clarity. He called for the rationalization of taxes on construction inputs, faster project approvals, and improved access to housing finance, which could significantly boost confidence among developers. He also emphasized that income tax reforms designed to enhance household purchasing power could unlock housing demand, support urban expansion, and drive long-term growth in the sector.
Bhavesh Kothari, Founder & CEO of Property First, echoed similar sentiments, calling for continued policy focus on affordable and mid-income housing. Kothari urged for enhanced tax benefits on home loans, rationalization of long-term capital gains, and easier access to institutional credit for developers. He also pointed out that clearer financing norms, infrastructure-led incentives, and faster approval mechanisms for projects could stimulate demand, particularly in emerging growth corridors. Kothari further stressed that infrastructure spending, the digitization of land records, and GST rationalization would improve transparency, reduce costs, and speed up project completion.
Amit Jain, CMD of Arkade Developers Limited, called for meaningful tax rationalization and targeted relief measures to improve project viability, especially in the affordable and mid-income housing segments. Jain believes that such measures would bridge the gap between demand and supply and improve liquidity. He also expects faster approvals and renewed investor confidence, which would lead to tangible expansion and timely home deliveries, benefiting the overall economy.
Finance Minister Nirmala Sitharaman is set to present the Union Budget for 2026-27 on February 1 at 11 am. This will mark her ninth budget in Parliament. With the budget presentation falling on a Sunday, the stock exchanges BSE and NSE will remain open for trading on that day. As the real estate sector anticipates these key policy measures, it hopes that the budget will pave the way for a more affordable, efficient, and sustainable housing market in India.
