As the Union Budget 2026 approaches, India’s real estate sector is making a familiar but sharpened case. The market has matured, costs have climbed, and buyer preferences have shifted decisively towards quality and liveability. What developers now want is policy that reflects these realities, not legacy thresholds framed for a very different time.
Pune, one of the country’s most consistent residential markets, captures this moment well. Strong end-user demand, expanding infrastructure, and a steady employment pipeline have kept the market resilient. But rising land prices, higher construction costs, and compliance-related delays are testing both affordability and supply. Realty leaders argue that targeted budgetary support could ease these pressures without distorting the market.
Rethinking affordable housing thresholds
One of the clearest asks from developers is a revision of the affordable housing price cap. The current Rs. 45 lakh limit, introduced years ago, no longer aligns with costs in high-growth urban centres.
Manish Jain, President of CREDAI Pune, points out that cities like Pune have seen sharp increases in land and construction expenses. “The existing Rs. 45 lakh price cap for affordable housing has become outdated in high-growth cities like Pune,” he says, adding that revising this threshold to Rs. 90 lakh would better reflect market realities.
The argument is not about pushing prices up, but about keeping homes within the affordable housing framework despite inflationary pressures. Developers believe that a higher cap, coupled with tax incentives, would encourage fresh supply and prevent affordable housing from quietly disappearing from prime urban locations.
Tax clarity and GST rationalisation
Beyond price caps, taxation remains a persistent concern. Developers are seeking rationalisation of GST on construction work contracts, which they say adds to project costs and creates ambiguity in compliance.
Simpler tax structures, they argue, can lower friction across the value chain, from contractors to homebuyers. For end-users, this could translate into marginally lower prices or better project features. For developers, it offers predictability in project planning, a crucial factor in long-gestation businesses like real estate.
Sustainability moves from intent to execution
Sustainability has shifted from being a buzzword to a balance sheet issue. Developers now face rising energy costs, stricter environmental norms, and more informed buyers. CREDAI, Jain notes, is focused on promoting green and sustainable construction, with a commitment towards achieving net-zero carbon emissions by 2047.
What the sector wants from the Budget is support that makes green building financially viable at scale. Incentives for energy-efficient materials, renewable integration, and water management systems could accelerate adoption, especially in mid-income housing where cost sensitivity is high.
Pune’s market maturity and growth drivers
From a broader market perspective, Pune’s residential story remains steady rather than speculative. Aakash Agarwal, Managing Director of Krisala Developers, describes pricing in 2025 as a reflection of maturity. According to him, the market now rewards strong locations, quality construction, and long-term livability, not short-term hype.
Infrastructure continues to play a central role. Metro expansion, road upgrades, and improving public transport are shaping new residential corridors. Combined with consistent job creation in IT, manufacturing, and services, these factors underpin end-user demand.
The push for faster approvals
If there is one operational issue developers repeatedly flag, it is the approval process. Agarwal stresses the need for faster and more predictable clearances, along with greater clarity on development control regulations.
Delays in approvals increase financing costs and disrupt delivery timelines, eventually affecting buyers. Streamlined, time-bound processes could improve supply flow without requiring large fiscal outlays.
A call for stability, not stimulus
What stands out in pre-Budget expectations this year is restraint. Developers are not asking for sweeping stimulus packages. Instead, they want calibrated policy adjustments, clarity, and continuity.
With rational taxes, updated housing definitions, support for sustainability, and infrastructure-led growth, real estate leaders believe the sector can continue contributing meaningfully to economic growth. For cities like Pune, Budget 2026 could be less about bold announcements and more about getting the fundamentals right.
