Real Estate Stakeholders Pin Hopes on Union Budget 2026 for Housing Affordability and Urban Growth

NEW DELHI: As the Union Budget 2026 approaches, real estate developers and allied stakeholders are seeking policy measures to improve housing affordability, unlock liquidity, rationalize taxation, and support long-term urban growth. From calls to revive homebuyer incentives and ease GST burdens to demands for deeper institutional capital and infrastructure-led development, the sector is pitching for reforms that address both demand-side stress and supply-side bottlenecks.

Industry leaders say Budget 2026 presents an opportunity to recalibrate housing policy in line with rising land and construction costs, evolving buyer preferences, and the growing role of real estate in India’s economic expansion.

Pradeep Aggarwal, founder & chairman of Signature Global (India), said extending and reintroducing the Credit Linked Subsidy Scheme (CLSS) could offer meaningful relief to first-time homebuyers while stimulating housing demand. He added that expanding the definition of affordable housing to include homes priced up to ₹1 crore would better reflect current market realities and strengthen the ‘Housing for All’ vision.

Sukhraj Nahar, president of CREDAI-MCHI, said the industry expects policy continuity and targeted interventions that boost buyer confidence, improve project liquidity, and ease redevelopment execution across the Mumbai Metropolitan Region. He also called for rationalization of GST on under-construction homes and clarity on tax exemptions for affordable housing and real estate investments to spur end-user demand.

Prashant Sharma, president of NAREDCO Maharashtra, strongly urged the government to revisit tax benefits for homebuyers by increasing the deduction limits on home loan interest and principal repayment under Sections 24(b) and 80C, which have remained unchanged for years. Rationalization of GST on construction materials and clarity on input tax credit would also help ease cost pressures. Additionally, faster approvals, policy support for redevelopment and urban housing, and incentives for sustainable and green developments will go a long way in supporting the sector’s long-term, inclusive growth.

Murali Malayappan, chairman & managing director of Shriram Properties, highlighted that affordability pressures are pushing mid-income buyers out of the market. He said measures such as removing GST, restoring input tax credits, and eliminating stamp duty could reduce apartment prices significantly. He also urged the government to incentivize rental housing, reinstate input tax credits, and push states towards a uniform stamp duty framework.

Ramesh Nair, CEO & MD of Mindspace REIT, said Budget 2026 should address structural liquidity and cost efficiency by increasing investment limits for insurance companies and encouraging provident and pension funds to allocate more capital to REITs. He also sought extension of input tax credit benefits to commercial leasing to improve cash flow visibility for office assets.

Harshavardhan Neotia, chairman of Ambuja Neotia Group, said granting industry status to real estate would recognize its role in urban growth and employment generation. He emphasized sustained infrastructure investment as critical to expanding urban boundaries, easing pressure on city cores, and enabling balanced regional development.

Rakesh Reddy, director of Aparna Constructions, said stable policy support and fiscal interventions such as enhanced home loan tax benefits, rationalization of capital gains, and an updated definition of affordable housing are essential to sustain demand. He added that premium and luxury housing also play a key role in anchoring investor confidence and supporting large-scale urban development.

Ajay Chaudhary, founder, chairman, and managing director of ACE Group, said infrastructure-led growth and rationalization of construction input costs are needed to support long-term urban development. He noted that premium and luxury homes now account for a significant share of sales in major cities, reflecting a shift towards quality-led end-user demand.

Here is what other real estate stakeholders expect from the Union Budget 2026:

Suhdir Pai, CEO of Magicbricks, said revising the affordable housing price cap in metros to ₹65 lakh and doubling the home loan interest deduction limit to ₹5 lakh could help convert stable demand into transactions, while policy clarity on execution is needed to avoid supply-demand mismatches.

Anurag Mathur, CEO of Savills India, said increasing the standard deduction or linking it to income levels could boost disposable incomes and housing demand. He also called for policy support for professionally managed rental housing, multi-family REITs, and land reforms to ease supply constraints.

Abhishek Bisen, head - fixed income of Kotak Mahindra AMC, said the market expects the fiscal deficit to remain on the consolidation path, with FY27 pegged at around 4.3%. He added that bond maturity management will be crucial to avoid liquidity pressures.

Manish Agarwal, managing director of Satya Group and president of CREDAI Haryana, urged the government to improve capital availability, streamline regulations for high-value transactions, and encourage fractional ownership structures to support luxury housing demand.

Paul Salnikoff, managing director and CEO of Executive Centre India, said targeted tax incentives for flexible workspaces would help strengthen the fast-growing managed office segment.

Sanjay Chatrath, co-founder & managing partner of Incuspaze, called for a reduction in GST on co-working services and full input tax credit on fit-outs and operating expenses to improve cost efficiency and deployment timelines.

Yogesh Bhatia, MD and CEO of LML Realty, said Budget 2026 should address the cost and complexity of industrial development by promoting plug-and-play industrial parks, shared infrastructure, and faster single-window approvals to support MSMEs and manufacturing growth.

Badal Yagnik, CEO & managing director of Colliers India, said standardization and revision of affordable housing criteria to reflect the price reality of Tier I cities can provide a demand-side boost to residential real estate. Also, supply-side push through infrastructure augmentation and capacity building can trigger long-term growth levers across real estate segments. Furthermore, real estate democratization and retail investor participation can be encouraged by making REITs and SM-REITs more attractive.

Dinesh Gupta, president of CREDAI West UP, said there is a need to increase the tax exemption limit on home loan interest, provide relief under Sections 80C and 24(B) of the Income Tax Act, and create an easy and affordable funding mechanism for stalled projects.

Shrinivas Rao, CEO of Vestian, said accelerated development of tier-2 cities through enhanced infrastructure and improved connectivity with major urban centres is imperative and will require increased private sector participation. Further, monetizing government land, refining the definition of affordable housing, and promoting mixed-use developments would support sustainable, inclusive, and efficient urban growth.