Real estate industry seeks affordability push, faster approvals and tax relief

As the Union Budget 2026 approaches, the Indian real estate industry is calling for targeted measures to revive affordability, streamline regulatory approvals and create a more supportive tax environment for both homebuyers and developers. With housing demand gradually shifting from a luxury-led cycle to a more value-driven market, industry leaders believe the upcoming budget presents a crucial opportunity to align policy with ground realities, particularly in the mid-income and affordable segments. Stakeholders are also seeking infrastructure-led growth, sustainability incentives and reforms that can ensure long-term stability amid global economic uncertainties.

Tanuj Shori, Founder and CEO, Square Yards, said the housing market is entering a new phase where value-driven demand is set to lead growth.

“The Indian housing market is clearly moving out of a luxury-led upcycle and into a more value-driven phase, with the mid-income segment poised to anchor growth as premium demand begins to stabilise.

From the Union Budget 2026, one should expect a sharper focus on improving affordability through enhanced tax relief for mid-income homebuyers, higher interest deduction limits and sustained investment in urban infrastructure. Equally important is policy support that encourages supply in the affordable and mid-market segments, as recent launches have been disproportionately skewed towards higher ticket sizes. A budget aligned to these realities can strengthen end-user demand and support a more balanced and sustainable phase of urban housing growth.”

Badal Yagnik, CEO and MD, Colliers India, said Budget 2026 is expected to balance fiscal discipline withgrowth, while positioning real estate as a key driver of economic expansion.

“The Union Budget 2026 is expected to prioritise growth across sectors and usher in equitable real estate development through policy incentives and tax rebates. Standardisation and revision of affordable housing criteria to reflect the price realities of Tier I cities can provide a significant demand-side boost. On the supply side, infrastructure augmentation and capacity building can trigger long-term growth across real estate segments. Additionally, making REITs and SM-REITs more attractive can encourage retail investor participation. As Indian real estate stands at the cusp of accelerated growth, the budget should also incentivise sustainability adoption and lay the foundation for long-term resilience against global volatility.”