Real Estate Sector Awaits Policy Support in Union Budget 2026

Ahead of the Union Budget 2026, the real estate sector has urged the government to ensure policy continuity, implement affordability-focused reforms, and provide easier access to finance to sustain growth amid stabilizing demand and interest rates. Industry leaders say the upcoming budget will play a crucial role in addressing cost pressures, boosting homebuyer confidence, and supporting emerging segments such as managed offices and logistics real estate.

Navin Makhija, Managing Director of The Wadhwa Group, noted that the sector is entering a more stable phase but will require strong policy backing to maintain momentum. “As we approach the Union Budget 2026, the sector is entering a phase of Measured Moderation, where stability and sustained demand will depend on supportive policies and easier access to finance. Real estate remains a critical economic multiplier, driving employment, enabling allied industries, and supporting India’s urbanisation story”, he said.

Makhija emphasized the importance of enhancing homebuyer-linked tax benefits and revising the definition of affordable housing, arguing that existing price caps no longer reflect current land and construction costs in major cities. “GST rationalisation on construction inputs and works contracts will also be vital to ease cost pressures and support timely project delivery”, he added.

Beyond housing, experts view Budget 2026 as an opportunity to acknowledge new-age real estate segments that support India’s expanding corporate and global business footprint. Kunal Mehra, Co-CEO and President of Table Space, stressed the need for formal recognition of managed workspaces as essential enterprise infrastructure, particularly as global capability centers and large corporates grow in India.

“Union Budget 2026 is a pivotal moment to formally recognise managed workspaces as core enterprise infrastructure underpinning India’s GCC and large-corporate growth”, Mehra said. He also highlighted that high GST remains a key hurdle for enterprise occupiers and called for a clear distinction between managed offices and hospitality services.

“Rationalising GST on managed offices from the current 18% slab - by clearly differentiating them from hospitality - would materially reduce friction for enterprise occupiers and accelerate adoption at scale”, he added, noting that incentives for green-certified, technology-led workspaces and simpler GST compliance could further strengthen India’s position as a global enterprise hub.

On the residential side, affordability and first-time buyer demand remain top concerns as home prices rise across urban markets. Sarthak Seth, Chief Sales and Marketing Officer at Tata Realty and Infrastructure Ltd., said the budget should revisit affordability thresholds to reflect present-day realities. “To keep the real estate sector growing, Budget 2026 should redefine affordability by raising the cap to Rs 80-90 lakh to match current market realities”, Seth said. He added that higher home loan deductions, lower GST, and continued infrastructure investment could help bridge the gap between buyer aspirations and housing supply.

Meanwhile, the industrial and logistics real estate segment seeks policy support to keep pace with rapid growth in manufacturing, e-commerce, and supply chains. Anshul Singhal, Managing Director of Welspun One, said the past financial year saw steady progress driven by public capital expenditure and initiatives such as PM Gati Shakti and industrial corridor development.

These measures have strengthened connectivity, supported manufacturing expansion, and reinforced the role of institutional-grade logistics and industrial assets as critical enablers of efficient supply chains and trade competitiveness, he said. Singhal added that Budget 2026 should focus on well-planned urban and near-urban logistics infrastructure to support faster deliveries while easing city congestion, along with clearer zoning norms, faster approvals, and predictable regulations to optimize land use and accelerate project execution.

With stabilizing interest rates, urbanization growth, and evolving buyer expectations, the real estate sector views Budget 2026 as a key opportunity to drive sustained growth, enhance affordability, and support emerging segments in the residential, commercial, and logistics space.