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As India prepares for Union Budget 2026, the real estate sector is looking toward the government with high expectations. Industry leaders believe that the upcoming budget has the potential to set the direction for housing demand, investor confidence, and long-term sectoral growth. From affordable and mid-income housing to infrastructure expansion, green development, and tax reforms, several key issues are expected to dominate the real estate wishlist.

According to industry experts, policy continuity and a strong focus on affordability will be critical to sustaining housing demand in the coming years. The sector also believes that growth should no longer remain limited to metro cities, but expand aggressively into Tier-II and Tier-III cities.

Hope for a Fresh Growth Momentum in Real Estate

Real estate developers expect Budget 2026 to provide a renewed push to urban development and infrastructure-led growth. Yash Garg, Director at M3M Noida, highlighted the need for a strong policy focus on emerging regions such as Noida. With rapid infrastructure development and the upcoming Jewar Airport corridor, connectivity has significantly transformed the region’s real estate landscape.

According to him, the next phase of growth should come from planned urbanisation, integrated townships, and well-structured mixed-use developments. Improved tax benefits for homebuyers in emerging corridors and granting infrastructure status to real estate could boost investor confidence and make funding more accessible. Faster project approvals through single-window clearance systems are also seen as crucial for timely delivery.

Strengthening Economic Stability and Investor Confidence

Vestian CEO Srinivas Rao believes Budget 2026 should focus on reinforcing India’s economic fundamentals amid global uncertainties. He emphasized the rapid development of Tier-II cities, supported by better infrastructure, stronger connectivity with metros, and increased private sector participation.

Amit Goyal, Managing Director of India Sotheby’s International Realty, pointed out that the budget comes at a time when a new global economic order is taking shape. He stressed the need for focused budgetary support toward urban challenges such as air pollution, water quality, waste management, and infrastructure shortages. Addressing these issues would make Indian cities more livable and globally competitive.

Mid-Income Housing Emerging as the Next Growth Driver

According to Tanuj Shori, Founder and CEO of Square Yards, the Indian housing market is transitioning from a luxury-driven upswing to a value-driven phase. As premium housing demand begins to stabilize, the mid-income segment is expected to become the primary engine of growth.

Industry players are hopeful that Budget 2026 will introduce better tax relief for mid-income homebuyers, raise the interest deduction limits on home loans, and ensure sustained investment in urban infrastructure. These measures could significantly improve housing affordability and demand.

Focus on First-Time Homebuyers

Manoj Gaur, CMD of Gaurs Group, expects the upcoming budget to sustain the momentum the real estate sector has gained in recent years. He called for higher budgetary allocations for infrastructure development, a softer stance on repo rates, and effective inflation control to support housing demand.

He also urged the government to expand the scope of EWS housing and PMAY, reinstate tax benefits under Section 80EEA, implement single-window clearance systems, and grant industry status to real estate.

Need for Approval Reforms and Supply-Side Support

Yash Miglani, MD of Migsun Group, believes that while the housing sector has shown resilience, future growth will depend on how quickly policies align with market realities. He emphasized the importance of increasing tax deduction limits, sending positive signals on interest rates, and streamlining approval processes to ensure smooth project execution.

Supporting Employment and Consumption Through Strong Policies

Pankaj Jain, Founder and Chairman of SPJ Group, highlighted the crucial role of real estate in driving employment and economic growth. He stressed the need for long-term, stable policies alongside infrastructure investment to strengthen organized retail and housing segments.

Emphasis on Investment, Green Development, and Connectivity

Ashish Bhutani, CEO of Bhutani Infra, stated that the sector expects policy initiatives that ease investment flows, accelerate infrastructure development, and promote green and wellness-focused real estate projects. Rationalized taxation and expanded metro and expressway connectivity could significantly boost investor sentiment.

Expanding Growth Beyond Metro Cities

Rajnikant Mishra, Founder and Chairman of Amravati Group Infra, emphasized that development focus must now extend beyond metro cities to Tier-II and Tier-III regions. He called for increased attention to roads, public transport, drainage systems, construction cost stability, skill development, and availability of a trained workforce.

Aligning End-User Demand with Infrastructure Investment

Saransh Trehan, Managing Director of Trehan Group, noted that incentives for affordable and mid-income housing, simplified compliance norms, and better access to institutional financing would help balance pricing and ensure timely project delivery.

Vikas Garg, Joint Managing Director of Ganga Realty, added that Budget 2026 is an opportunity to further strengthen end-user demand. He advocated for higher tax deductions on home loan interest and principal repayments, along with robust infrastructure capex as a foundation for real estate growth.

Final Outlook

Overall, the real estate sector views Budget 2026 as a critical opportunity to reinforce affordability, sustainability, and long-term growth. With the right mix of tax relief, infrastructure investment, green development incentives, and policy reforms, the budget could play a decisive role in shaping the future of India’s housing and urban development landscape.

Disclaimer: The views expressed in this article are based on industry opinions and are for informational purposes only. Readers are advised to consult certified experts before making any investment decisions.