By Admin 
Budget 2026: This time there is a lot of excitement in the real estate sector regarding the Union Budget 2026. In the last few years, while on one hand there was an improvement in the demand for houses, on the other hand rising interest rates, construction costs and inflation also put pressure on the sector. In such a situation, the real estate industry is now expecting such policy decisions from the government, which will further strengthen the confidence of home buyers and provide a path to stable growth for developers.
The biggest demands of the sector include increasing tax exemption on home loans, reprioritizing affordable housing, increasing spending on infrastructure, simplifying the tax structure, reducing GST on construction and considering housing as essential infrastructure.
If tax exemption on home loan increases, purchasing will increase
Real estate experts believe that even today the biggest challenge for the middle class is home loan EMI. If the limit of tax exemption on interest and principal on home loan is increased in Budget 2026, then a large number of end users can return to the market.
County Group Director Amit Modi says that the real estate sector is a strong base of the country’s economy and contributes significantly to the GDP. From Budget 2026, the sector hopes that the government will pay attention to the old demands and focus on clean and stable policies instead of subsidies. In the last two years, there has been a demand for houses above Rs 2 crore, where buyers are considering houses not as an expense but as a long-term investment. Now the sector needs clarity regarding tax regime, especially capital gains and indexation. Stability in rules will enable developers to plan better and bigger projects. Budget 2026 has an opportunity to further strengthen India’s luxury housing market as a credible investment option.
Infrastructure spending will change the picture of real estate
In the last few years, projects like expressways, metros and airports have changed the direction of real estate. The sector expects that spending on infrastructure will increase further in Budget 2026. Yash Miglani, MD, Migson Group, says the housing sector has shown its strength in recent years, but further growth will depend on policies.
It is expected from Budget 2026 that the tax deduction limit should be increased and the income conditions should be fixed according to the existing house prices, so that buying a house can be easier. Positive signals on interest rates will maintain buyer confidence. Also, single-window clearance and investment in infrastructure will ensure timely completion of projects and development of new housing areas.
If taxes and duties are reduced, trust will increase.
There has been a demand for relief in the sector for a long time regarding stamp duty and GST. Developers believe that reducing transaction costs will boost the market.
Sanjay Sharma, Director, SKA Group, says that the real estate sector expects such steps from the Union Budget 2026, which will make buying a house more affordable. Rationalizing stamp duty and simplifying the tax process will reduce the burden on home buyers and enable quicker decisions. Continuation of home loan incentives will boost demand and underpin steady growth in the housing sector.
Hope on rental and commercial segment also
Due to work-from-home and hybrid models, changes are being seen in the commercial and rental housing segments. Developers want a clear policy for both these segments in the budget.
Sanchit Bhutani, Managing Director of Group 108, says that commercial real estate is now in a period of stable and strong growth. In both office and retail segments, the focus is now on exact and quality demand rather than quantity. Customer movement has strengthened due to experience-based format and better tenants in retail.
From Budget 2026, this sector is expected to get relief in GST, simplification of rules and incentives for modernization of office and retail properties. This will boost investment, employment and economic activities. At the same time, Ansal Housing Director Kushagra Ansal says that the need for rental housing is increasing rapidly in cities. If separate incentives are given for rental housing and commercial space in Budget 2026, it will be a big step for urban development.
Demand to increase the limit of affordable housing intensifies
The major demands of the real estate sector include reconsideration of the fixed price limit of affordable housing. Developers say the Rs 45 lakh limit set for affordable housing no longer matches the current market situation in most urban areas. As Budget 2026 approaches, the real estate sector is expecting tax signals from the government that take into account the reality of rising land and construction costs in cities. In the current system, the limit of Rs 45 lakh and the benefit of 1% GST on it is no longer practical in many developing areas. In view of this, the industry is demanding to increase the price limit of affordable housing to Rs 80 to 90 lakh. Also, it is being suggested to reduce the GST rate on construction contracts from 18 percent to 12 percent. Developers believe that these steps will give impetus to stalled projects and help in increasing the supply of new homes in the market.
Sikka Group Chairman Harvinder Singh Sikka says that the real estate sector needs stable and clear policies at this time. In Budget 2026, if the government simplifies the tax structure, eases funding and makes the approval process more transparent, it will increase the confidence of both developers and investors. Such steps will help in bringing long-term strength in the market.
Kushagra Ansal, director of Ansal Housing, says, if capital expenditure on urban infrastructure and transport network is increased in Budget 2026, then the demand for real estate will remain intact for a long period. Especially markets like NCR, Mumbai and Bengaluru will get direct benefits from this. Better roads, metro connectivity and multi-modal transport systems give developers the confidence to launch projects in new areas and also increase home choice for buyers.
Sector will get new confidence from balanced budget
Overall, the real estate sector is expecting such balanced decisions from Budget 2026, which on one hand provide relief to home buyers and on the other hand give stability and investment assurance to developers. Experts believe that if the government lives up to these expectations, then the real estate sector can play a bigger role in the country’s economic growth in the coming years.
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