Budget 2026- Real Estate Seeks Tax Relief, Policy Clarity and Infrastructure Push

As the Union Budget 2026 approaches, India’s real estate sector is calling for a calibrated mix of tax relief, regulatory clarity and sustained infrastructure spending to maintain housing demand and support long-term growth.

With affordability under pressure due to rising land, construction and financing costs, developers and industry bodies are urging the government to revisit homebuyer tax incentives, rationalise GST structures and update the definition of affordable housing to reflect current market realities. On the supply side, faster approvals, single-window clearances and clearer policy frameworks are seen as critical to improving project viability and attracting long-term institutional capital.

Beyond fiscal measures, stakeholders stress that continued infrastructure-led urban planning, especially improved connectivity and regional development; will be key to sustaining residential demand, unlocking new micro-markets and strengthening real estate’s contribution to India’s GDP in the years ahead.

Viren Mehta, Founder & Director, ElitePro Infra says, “The industry seems to have gotten back on track, but going forward, only if the ownership base expands, meaning if the industry gets to serve more people and not just the high end, can it experience steady growth. More tax relief on loans for housing, particularly under section 80C, would be highly effective in benefiting the first-time buyer and upgrade cycles. Incentivising developers to venture into affordable housing also needs renewed attention in metro peripheries and tier-2 cities where demand is real but supply economics remain tight. Faster approvals and regulatory consistency will further improve execution quality and buyer confidence.”