From housing affordability to green buildings: what real estate expects from Budget 2026

As Budget 2026 approaches, real estate developers, investors and allied industries are looking to the government for policy continuity, targeted fiscal support and structural reforms that can sustain momentum in a sector increasingly seen as a pillar of India’s long-term growth story.

From housing affordability and infrastructure-led urbanisation to capital access and regulatory efficiency, industry leaders believe the upcoming Budget has an opportunity to deepen confidence across residential, commercial and mixed-use real estate.

Real estate as a stable, long-term asset

Robin Mangla, President of M3M India, underlines that amid global and domestic volatility, real estate continues to stand out as a resilient, long-term investment option. He believes Budget 2026 can strengthen the sector’s role not just as a wealth-preservation asset, but also as a catalyst for urban transformation.

Mangla points to the need for a stable and predictable policy framework, especially for premium residential and mixed-use developments, alongside rationalisation of taxation for homebuyers and easier access to long-term institutional capital. Faster approvals and single-window clearances, he says, remain critical to improving project execution and capital efficiency.

Echoing this view, Sidharth Chowdhry, Managing Director of Dalcore, expects policy continuity and selective fiscal support to drive demand in premium and luxury housing markets such as Gurugram. According to him, rationalisation of stamp duty and enhanced tax benefits on home loan interest could significantly boost end-user sentiment, while access to low-cost, long-term financing would help developers deliver high-quality projects in globally competitive micro-markets.

Affordable housing, rates and regulatory reforms

From the affordable and mid-income housing perspective, Manoj Gaur, CMD of Gaurs Group, hopes the Budget builds on the momentum of recent years. He expects continued emphasis on infrastructure spending, along with an accommodative interest rate environment to support housing demand.

Gaur also reiterates long-standing industry demands such as widening the scope of EWS and PMAY, reinstating benefits under Section 80EEA for first-time buyers, granting industry status to real estate, and implementing a single-window clearance mechanism.

Dr Gautam Kanodia, Founder of KREEVA and Kanodia Group, also highlights industry status as a critical reform that could improve access to organised capital and support long-gestation housing projects. He believes sustained infrastructure investment, especially in NCR, combined with supportive liquidity conditions, can unlock the next phase of real estate-led economic growth.

Infrastructure and construction as growth multipliers

The broader infrastructure push remains central to real estate expectations. Rajan Luthra, CFO of ACE-Action Construction Equipment Ltd, notes that with public capex continuing to anchor economic momentum, demand for construction equipment is likely to recover on the back of private capex, exports, defence and large infrastructure projects such as airports, railways and freight corridors.

He adds that GST rationalisation, lower interest rates and improved liquidity could further crowd in private investment and accelerate project execution.

Mohit Goel, Managing Director of Omaxe Ltd, believes the focus should remain on long-term clarity rather than short-term stimulus. He sees strong potential in Tier 2 and Tier 3 cities, supported by urban infrastructure, transport connectivity and housing-linked development.

According to Goel, policies that strengthen public-private partnerships, streamline approvals and enhance buyer confidence can help align private capital with national development priorities.

Capital markets, sustainability and new investment avenues

From an investor and capital markets lens, Binitha Dalal, Founder and Managing Partner at Mt. K Kapital, stresses the importance of fiscal prudence and measures that enhance India’s resilience to global shocks.

For real estate, she highlights the need for housing affordability, GST rationalisation on construction and redevelopment, and clearer policy frameworks for REITs and alternative capital pools. Dalal also expects greater incentives for green buildings and sustainable construction to future-proof the sector.

Amrita Gupta, Director at Manglam Group, echoes the focus on sustainability and affordability, particularly for cities like Jaipur, where demand is increasingly end-user driven. She believes a stable interest rate environment, incentives for green construction and clarity on redevelopment policies can support long-term, quality-led housing demand.

Emerging segments and new demand drivers

Looking beyond traditional housing, Aditya Kushwaha, CEO and Director of Axis Ecorp, points to the growing potential of the holiday home segment, especially in destinations like Goa. He expects continued infrastructure development and tourism-led growth, along with easier ownership norms, to encourage deeper NRI participation.

According to Kushwaha, any Budget measures that enhance affordability and buyer confidence could accelerate demand for second homes as both lifestyle assets and investment opportunities.

A quality-driven growth cycle

Across voices, a common theme emerges: Budget 2026 is not expected to deliver sweeping, big-bang announcements, but rather reinforce stability, execution efficiency and long-term confidence.

With sustained infrastructure investment, targeted fiscal measures, easier capital access and a sharper focus on quality and sustainability, industry leaders believe real estate can play a larger role in employment generation, urban development and India’s journey towards becoming a globally competitive economic powerhouse.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)