NEW DELHI: With the Union Budget 2026 on the horizon, real estate developers and stakeholders are advocating for policy changes aimed at enhancing housing affordability, increasing liquidity, rationalizing taxes, and fostering long-term urban development. They are urging revisions in homebuyer incentives, adjustments in GST, and support for institutional capital and infrastructure initiatives to alleviate demand-side stresses and supply-side constraints.
Industry leaders suggest that Budget 2026 is a key moment to realign housing policies with the realities of escalating land and construction costs, shifting buyer preferences, and the expanding role of real estate in India’s economic growth.
Pradeep Aggarwal, the founder and chairman of Signature Global (India), emphasized the need to extend and reintroduce the Credit Linked Subsidy Scheme (CLSS) to provide significant support to first-time homebuyers and stimulate housing demand. He proposed that expanding the affordable housing definition to include homes priced up to ₹1 crore would better align with market conditions and strengthen the ‘Housing for All’ initiative.
Sukhraj Nahar, president of CREDAI-MCHI, expressed the industry’s hope for consistent policies and targeted measures to boost buyer confidence, enhance project liquidity, and smooth redevelopment processes in the Mumbai Metropolitan Region. He urged for the GST on under-construction homes to be rationalized and for clarity on tax exemptions related to affordable housing and real estate investments to motivate end-user purchases.
Prashant Sharma, president of NAREDCO Maharashtra, called for the government to revisit homebuyer tax benefits by increasing deduction limits on home loan interest and principal repayments under Sections 24(b) and 80C, which have remained stagnant for years. He also advocated for the rationalization of GST on construction materials and clarity on input tax credits. Furthermore, he pointed out that quicker approvals, policy backing for redevelopment and urban housing, and incentives for sustainable developments are vital for the sector’s long-term, inclusive growth.
Murali Malayappan, chairman and managing director of Shriram Properties, noted that rising affordability challenges are driving mid-income buyers from the market. He suggested measures such as eliminating GST, restoring input tax credits, and removing stamp duty to significantly lower apartment prices. He also called for incentives for rental housing, reinstatement of input tax credits, and a push towards a uniform stamp duty framework across states.
Ramesh Nair, CEO and MD of Mindspace REIT, stated that Budget 2026 should focus on addressing structural liquidity and cost efficiencies by increasing investment limits for insurance companies and encouraging provident and pension funds to invest more in REITs. He also advocated for extending input tax credit benefits to commercial leasing to enhance cash flow visibility for office assets.
Harshavardhan Neotia, chairman of the Ambuja Neotia Group, emphasized the importance of recognizing real estate as an industry that significantly contributes to urban growth and job creation. He pointed out the necessity for sustained infrastructure investments to alleviate pressure on city centers and promote balanced regional development.
Rakesh Reddy, director of Aparna Constructions, emphasized the importance of stable policy support and fiscal measures such as enhanced home loan tax benefits, rationalization of capital gains, and an updated definition of affordable housing to sustain demand. He suggested that premium and luxury housing are also crucial for maintaining investor confidence and facilitating large-scale urban development.
Ajay Chaudhary, founder, chairman, and managing director of ACE Group, stressed the need for infrastructure-led growth and the rationalization of construction input costs to support long-term urban development. He pointed out that premium and luxury homes now represent a significant portion of sales in major cities, indicating a shift towards a quality-driven market demand.
Feedback on the Union Budget 2026 from other real estate stakeholders:
Suhdir Pai, CEO of Magicbricks, suggested that raising the affordable housing price cap in metros to ₹65 lakh and doubling the home loan interest deduction limit to ₹5 lakh could turn stable demand into transactions, with policy clarity needed to prevent supply-demand mismatches.
Anurag Mathur, CEO of Savills India, recommended increasing the standard deduction or linking it to income levels to support disposable incomes and housing demand. He also called for policy support for professional rental housing management, multi-family REITs, and land reforms to alleviate supply constraints.
Abhishek Bisen, head of fixed income at Kotak Mahindra AMC, indicated that the market expects the fiscal deficit to remain in consolidation mode, with FY27 projected at approximately 4.3%. He noted the importance of efficient bond maturity management to avert liquidity challenges.
Manish Agarwal, managing director of Satya Group and president of CREDAI Haryana, urged the government to enhance capital availability, streamline regulations for high-value transactions, and encourage fractional ownership options to bolster luxury housing demand.
Paul Salnikoff, managing director and CEO of Executive Centre India, argued that targeted tax incentives for flexible workspaces could significantly benefit the rapidly growing managed office sector.
Sanjay Chatrath, co-founder and managing partner of Incuspaze, called for a reduction in GST on co-working services and full input tax credits on fit-outs and operating expenses to enhance cost efficiency and deployment timelines.
Yogesh Bhatia, MD and CEO of LML Realty, pointed out that Budget 2026 should simplify the cost and complexities surrounding industrial development by promoting plug-and-play industrial parks, shared infrastructure, and faster approval processes to assist MSMEs and manufacturing growth.
Badal Yagnik, CEO and managing director of Colliers India, noted that standardizing and revising the affordable housing criteria to align with Tier I city price realities could stimulate demand for residential real estate. He also highlighted the importance of supply-side pushes through infrastructure enhancements and capacity building, along with promoting real estate democratization and retail investor participation through attractive REITs and SM-REITs.
Dinesh Gupta, president of CREDAI West UP, emphasized the need to raise the tax exemption limit on home loan interest, provide relief under Sections 80C and 24(B) of the Income Tax Act, and establish accessible funding mechanisms for stalled projects.
Shrinivas Rao, CEO of Vestian, stated that accelerating the development of tier-2 cities through improved infrastructure and connectivity with major urban areas is crucial and will necessitate increased participation from the private sector. He also advocated for monetizing government land, refining the definition of affordable housing, and fostering mixed-use developments to support sustainable, inclusive, and efficient urban growth.
