Pre-Budget 2026: Real Estate Sector Eyes Policy Boost and Market Momentum

Budget 2026 is widely seen as a potential inflection point for India’s real estate sector, as the gap between the luxury housing market and a stressed affordable segment continues to widen. While premium and high-end homes have sustained healthy demand and capital inflows, the affordable and mid-income housing categories, crucial for first-time buyers and urban workforce housing, have come under pressure due to rising land and construction costs. Against this backdrop, developers closely watch Budget 2026 for policy signals that can restore balance to the housing ecosystem, revive affordability and support inclusive urbanisation, while preserving growth momentum in the premium and luxury segments.

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..

If the Budget aligns tax policy with these emerging urban realities, it can create more predictable housing cycles rather than episodic spurts."Therefore, as Budget 2026 approaches, the real estate sector is seeking clear, forward-looking signals to bring coherence to housing, taxation, and urban development policies. The expectation is not for disruptive shifts, but for a calibrated framework that sustains market momentum, improves buyer confidence and supports India’s evolving urban growth story over the long term.