Ahead of the Union Budget 2026, the country's real estate sector is hoping for policy continuity and significant reforms to boost housing demand and accelerate urban development.

Real estate sector demands before Union Budget 2026: Tax exemptions and GST relief expected; learn more.

Real Estate Budget 2026: Ahead of the Union Budget 2026, the country's real estate sector is hoping for policy continuity and significant reforms to boost housing demand and accelerate urban development.

The sector has seen steady growth in recent years due to end-user demand, improved affordability, and infrastructure expansion. Developers believe the upcoming budget could be crucial for the next phase of real estate growth.

Expert opinion

Industry experts say the government should continue to view housing as a key engine of economic growth, especially at a time when interest rates are stable and homebuyer confidence remains high. Key demands from the sector include increasing tax benefits for homebuyers, rationalizing GST on under-construction properties, and increasing budget allocations for urban infrastructure and affordable housing.

A major expectation in the real estate sector is the increase in the Section 24(b) limit for home loan interest deductions. Given the rise in property prices and construction costs over the past few years, developers believe that increasing the tax deduction will directly benefit end-users and encourage first-time homebuyers to purchase homes. Furthermore, clarity regarding GST input tax credits and a potential reduction in GST rates on under-construction homes could boost housing demand.

Expect a tax exemption on principal payment.

Speaking about budget expectations, Vikas Garg, Joint Managing Director of Ganga Realty, said, "The upcoming Union Budget offers an opportunity to further strengthen end-user demand in the housing sector. We hope the government will consider increasing the tax exemption on interest and principal payments on home loans, which have remained unchanged for a long time. Buyer-centric policies and policy stability, especially in high-growth markets like Gurugram, will help sustain the current positive trend, where demand is primarily coming from genuine buyers."

Infrastructure investment also remains a key focus area for the real estate sector. Continued investments in highways, metro networks, expressways, and regional connectivity have significantly improved real estate prospects in emerging areas. Developers believe that increased capex on infrastructure will not only drive housing demand but also support commercial and mixed-use developments.

Garg further added that robust infrastructure improves connectivity, thereby enhancing the livability and investment attractiveness of cities, which brings long-term benefits to both developers and buyers.

Expectations of the Managing Director of Trehan Group 

Real estate has emerged as a strong pillar of the country's economic growth, and the budget can further accelerate housing demand and infrastructure-led development. We expect continued incentives for affordable and mid-income housing and policies that improve project viability. Simplifying compliance processes and improving access to institutional financing will help developers deliver quality projects on time, while keeping prices competitive for buyers.

Saransh Trehan also stated that a stable policy environment and a long-term vision are crucial to maintaining investor confidence. He emphasized that clear tax policies and continued urban infrastructure development will attract both domestic and global investors to Indian real estate.