Union Budget 2026: Real Estate Sector Awaits Key Reforms and Tax Incentives

As the Union Budget 2026–27 approaches, the real estate sector is bracing for a set of policy measures that can drive growth, enhance affordability, and ensure project viability. Industry leaders are looking to the government for reforms that can sustain housing demand and investment momentum.

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The real estate sector is closely linked to employment generation, infrastructure expansion, and economic resilience. Therefore, the Union Budget 2026 is seen as a critical opportunity to reinforce real estate’s role as a key driver of India’s growth story. Industry leaders are calling for a range of measures, including enhanced tax incentives on home loans, rationalisation of construction-related taxes, faster approvals, improved access to finance, and infrastructure-led development.

Such measures, they believe, can unlock demand across affordable, mid-income, and emerging urban markets, accelerate project execution, and position the sector for sustainable, long-term expansion aligned with India’s evolving aspirations.

Ahead of the Union Budget 2026–27, real estate leaders have expressed their expectations on taxation, infrastructure, and housing reforms.

Manan Joshi, Founder of Sarvam Properties, emphasizes the need for measures that enhance tax incentives on home loans and related deductions. He states, “With affordability still a key challenge for homebuyers, we urge measures that enhance tax incentives on home loans and related deductions, helping more middle-income families realise the dream of owning a home. Tax relief geared toward home loan interest, rationalisation of GST for construction inputs, and expanded benefits for affordable housing will be vital to stimulate demand and revive stalled projects, creating deeper market confidence and unlocking growth across urban and emerging regions. A Budget that combines tax relief, affordability measures, and growth incentives will not only benefit homebuyers but also sustain the sector as a dynamic engine of employment and economic activity.”

Navin Dhanuka, Director of ArisUnitern RE Solutions, highlights the importance of a stable, forward-looking policy framework. He notes, “As India heads into Budget 2026–27, the real estate sector will benefit most from a stable, forward-looking policy framework that prioritises infrastructure development, ease of execution, and regulatory clarity. Measures such as rationalisation of taxes on construction inputs, faster approvals, and improved access to housing finance can meaningfully strengthen supply-side confidence. Coupled with income-tax reforms that enhance household purchasing power, Budget 2026 can unlock housing demand, support planned urban expansion, and drive sustainable, long-term growth.”

Bhavesh Kothari, Founder & CEO of Property First, underscores the need for continued policy focus on affordable and mid-income housing. He explains, “We expect continued policy focus on affordable and mid-income housing through enhanced tax benefits on home loans, rationalisation of long-term capital gains, and easier access to institutional credit for developers. Clearer financing norms, infrastructure-led incentives, and faster approval mechanisms for projects will unlock demand in emerging growth corridors, especially among first-time buyers and self-build homeowners. A sustained push on infrastructure spending, digitisation of land records, and GST rationalisation for construction inputs will further improve transparency, reduce costs, and accelerate project completion timelines. A stable, growth-oriented Budget can reinforce real estate’s role as a long-term wealth creator while aligning housing demand with India’s evolving aspirations.”

Amit Jain, CMD of Arkade Developers Limited, emphasizes the importance of meaningful tax rationalisation. He states, “At the same time, meaningful tax rationalisation and targeted relief measures, if considered by the government, particularly in affordable and mid-income housing, could significantly improve project viability and help us bridge the gap between demand and supply. If the government delivers on these fronts, we expect improved liquidity, faster approvals, and renewed investor confidence that will translate into tangible expansion, more homes delivered on time, and broad-based economic uplift overall.”

Finance Minister Nirmala Sitharaman will present the Union Budget for 2026–27 on February 1 at 11 am, marking her ninth budget in Parliament. As the budget day falls on a Sunday, stock exchanges BSE and NSE will remain open for trading that day.

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