For Union Budget 2026, real estate developers and allied stakeholders are seeking policy measures to improve housing affordability, unlock liquidity, rationalise taxation, and support long-term urban growth.

The real estate sector is pitching for reforms that address both demand-side stress and supply-side bottlenecks, including requests to revive homebuyer incentives, ease GST burdens, attract deeper institutional capital, and encourage infrastructure-led development.

As per the industry leaders, the upcoming Budget 2026 offers a timely opportunity to re-evaluate and adjust housing policy. They suggest these changes are necessary to keep pace with increasing land and construction costs, changing buyer preferences, and the real estate sector's expanding contribution to India's overall economic growth.

1. Pradeep Aggarwal, Founder and Chairman of Signature Global (India), said that extending and reinstating the Credit Linked Subsidy Scheme (CLSS) would provide significant relief to first-time homebuyers and help boost housing demand. He further noted that broadening the definition of affordable housing to include homes priced up to ₹1 crore would align better with current market conditions and reinforce the 'Housing for All' vision.

2. Sukhraj Nahar, President of CREDAI-MCHI, said the industry expects policy continuity and targeted measures to boost buyer confidence, improve project liquidity, and ease redevelopment across the Mumbai Metropolitan Region. He also called for rationalisation of GST on under-construction homes and greater clarity on tax exemptions for affordable housing and real estate investments to support end-user demand.

3. Prashant Sharma, President of NAREDCO Maharashtra, said the government should revisit tax benefits for homebuyers by raising the deduction limits on home loan interest and principal repayment under Sections 24(b) and 80C, which have remained unchanged for several years. He added that rationalising GST on construction materials and providing clarity on input tax credit would help reduce cost pressures. He further noted that faster approvals, policy support for redevelopment and urban housing, along with incentives for sustainable and green developments, would significantly support the sector's long-term and inclusive growth.

4. Murali Malayappan, Chairman and Managing Director of Shriram Properties, said rising affordability pressures are forcing mid-income buyers out of the housing market. He noted that steps such as removing GST, restoring input tax credits, and waiving stamp duty could significantly lower apartment prices. He also called on the government to incentivise rental housing, reinstate input tax credits, and encourage states to adopt a uniform stamp duty framework.

5. Ramesh Nair, CEO and Managing Director of Mindspace REIT, said Budget 2026 should focus on improving structural liquidity and cost efficiency by raising investment limits for insurance companies and encouraging greater participation from provident and pension funds in REITs. He also called for extending input tax credit benefits to commercial leasing to enhance cash flow visibility for office assets.

6. Harshavardhan Neotia, Chairman of Ambuja Neotia Group, said that granting industry status to real estate would acknowledge its contribution to urban growth and employment creation. He also stressed that sustained investment in infrastructure is vital for expanding urban limits, reducing pressure on city centres, and supporting balanced regional development.

7. Rakesh Reddy, Director of Aparna Constructions, said sustained demand depends on stable policy support and fiscal measures such as higher home loan tax benefits, rationalised capital gains norms, and an updated definition of affordable housing. He added that premium and luxury housing also play an important role in reinforcing investor confidence and supporting large-scale urban development.

8. Ajay Chaudhary, Founder, Chairman and Managing Director of ACE Group, said infrastructure-led growth and the rationalisation of construction input costs are essential for long-term urban development. He added that premium and luxury homes now make up a sizable share of sales in major cities, indicating a shift toward quality-driven end-user demand.

9. Abhishek Bisen, Head - Fixed Income at Kotak Mahindra AMC, said the market expects the fiscal deficit to stay on a consolidation path, with FY27 projected at around 4.3%. He added that effective bond maturity management will be key to preventing liquidity pressures.

10. Manish Agarwal, Managing Director of Satya Group and President of CREDAI Haryana, called on the government to enhance capital availability, simplify regulations for high-value transactions, and promote fractional ownership models to support demand in the luxury housing segment.

11. Paul Salnikoff, Managing Director and CEO of Executive Centre India, said that targeted tax incentives for flexible workspaces would support and strengthen the rapidly growing managed office segment.

12. Sanjay Chatrath, Co-founder and Managing Partner of Incuspaze, called for lowering GST on co-working services and allowing full input tax credit on fit-outs and operating expenses to enhance cost efficiency and speed up deployment timelines.

13. Yogesh Bhatia, Managing Director and CEO of LML Realty, said Budget 2026 should focus on reducing the cost and complexity of industrial development by encouraging plug-and-play industrial parks, shared infrastructure, and quicker single-window approvals to support MSMEs and manufacturing growth.

14. Dinesh Gupta, President of CREDAI West UP, said there is a 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 an easy and affordable funding mechanism for stalled projects.

15. Shrinivas Rao, CEO of Vestian, said that accelerating the development of Tier-2 cities through better infrastructure and improved connectivity with major urban centres is essential and will require greater private sector participation. He added that monetising government land, refining the definition of affordable housing, and promoting mixed-use developments would support sustainable, inclusive, and efficient urban growth.

The industry leaders see Budget 2026 as a critical opportunity to address both demand and supply-side challenges in real estate. By revisiting homebuyer incentives, rationalising taxes, promoting institutional investment, and supporting infrastructure-led urban growth, the sector aims to ensure sustainable, inclusive, and long-term development while keeping pace with rising costs and evolving buyer preferences.