Real Estate Budget 2026: Before the Union Budget 2026, the country’s real estate sector is expecting some important reforms along with continuity in policy. So that housing demand can be strengthened and urban development can be accelerated.
In recent times, the sector has seen steady growth due to end-user demand, better affordability and infrastructure expansion. In such a situation, developers believe that the upcoming budget can prove to be important for the next growth phase of real estate.
expert opinion
Industry experts say the government should continue to view housing as a key engine of economic growth. Especially at a time when interest rates are stable and homebuyers are confident. Key demands of the sector include increasing tax benefits for homebuyers, rationalizing GST on under-construction properties and increasing budget allocation for urban infrastructure and affordable housing.
A major expectation of the real estate sector is to increase the limit of interest exemption section 24(b) on home loan. Given the increase in property prices and construction costs over the past few years, developers believe that increasing the tax deduction will directly benefit end-users and encourage first-time homebuyers to purchase homes. Apart from this, clarity regarding GST input tax credit and possible reduction in GST rates on under-construction houses can boost housing demand.
Expected tax exemption on principal payment
Talking about the expectations related to the budget, Vikas Garg, Joint Managing Director, Ganga Realty said, the upcoming Union Budget is an opportunity to further strengthen the end-user demand in the housing sector. We hope that the government will consider increasing the tax exemption on interest and principal payments on home loans, which has remained unchanged for a long time. Buyer-centric policies and policy stability will help maintain the current positive trend, especially in high-growth markets like Gurugram, where demand is mainly coming from genuine buyers.
Infrastructure investment also remains an important focus area for the real estate sector. Continuous investment in highways, metro networks, expressways and regional connectivity has significantly improved real estate prospects in emerging areas. Developers believe that increasing capex on infrastructure will not only increase housing demand but also support commercial and mixed-use development.
Garg further said that strong infrastructure improves connectivity, which increases the livability and investment attractiveness of cities. Which brings long-term benefits for both developers and buyers.
Expectations of Managing Director of Trehan Group
Real estate has emerged as a strong pillar of the country’s economic growth and the budget can further accelerate housing demand and infrastructure-led growth. We expect continued incentives for affordable and mid-income housing and policies that improve the feasibility of projects. Simplifying the compliance process and better access to institutional financing will help developers deliver quality projects on time, while also keeping prices competitive for buyers.
Saransh Trehan also said that stable policy environment and long-term vision is very important to maintain investor confidence. He stressed that clear tax policies and continued urban infrastructure development will attract both domestic and global investors towards Indian real estate.
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