As India prepares for Union Budget 2026, voices from across real estate, flexible workspaces, and retail are converging around a common theme: policy support must keep pace with how the sector has evolved. What was once viewed narrowly as brick-and-mortar development is now deeply linked to enterprise growth, employment generation, global trade, and urban transformation.
From flexible offices enabling new-age businesses to housing affordability challenges and the growing complexity of retail real estate, industry leaders are urging the government to treat real estate as a strategic economic enabler rather than a transactional sector.
Flexible Workspaces: From Convenience to Core Infrastructure
Anshu Sarin, CEO of 91Springboard, believes India’s flexible workspace sector has moved far beyond being a stopgap solution for startups and small businesses. According to her, flexible offices have become a strategic layer in how modern enterprises scale, operate, and enter new markets.
As companies increasingly adopt hybrid models and global capability centres expand across Indian cities, Sarin argues that flexible workspaces should be recognised as part of India’s commercial infrastructure. She sees the upcoming budget as an opportunity for policymakers to acknowledge this shift.
From a policy perspective, Sarin highlights the need for rationalised GST norms, faster and more predictable approvals, and easier access to capital. These measures, she says, can significantly improve the sector’s ability to support enterprise growth, attract global corporations, and strengthen India’s competitiveness on the world stage.
At the same time, Sarin underlines that responsibility does not rest with the government alone. Flexible workspace operators must continue investing in technology, sustainability, and high-quality work environments that meet the expectations of global and domestic occupiers. A collaborative approach, where policy enables scale and the private sector delivers consistent experiences, could unlock long-term value and private investment.
Housing and Core Real Estate: Demand, Affordability, Execution
For traditional real estate, the expectations from Budget 2026 remain firmly centred on demand stimulation and affordability. Prashant Sharma, President of NAREDCO Maharashtra, reiterates that the sector remains a key driver of economic growth, employment, and allied industries.
Sharma points out that measures which strengthen end-user demand and accelerate project execution are essential at this stage of the cycle. One of the industry’s long-standing demands, he notes, is the granting of infrastructure status to housing, particularly in the affordable and mid-income segments. Such a move would improve access to institutional finance and lower borrowing costs, providing developers with greater financial flexibility.
Tax relief for homebuyers is another priority. Sharma urges the government to revisit deductions on home loan interest and principal repayments under Sections 24(b) and 80C, which have not been revised for several years. With property prices and borrowing costs rising, he believes updated limits could revive buyer sentiment.
He also stresses the importance of rationalising GST on construction materials and providing clarity on input tax credits, both of which can ease cost pressures across the value chain. Faster approvals, policy support for redevelopment, and incentives for sustainable construction are, in his view, critical for the sector’s long-term growth.
Rethinking Affordable Housing for Today’s Market
Jagmohan T, Director of Casagrand’s Pune Zone, takes the affordability debate a step further by questioning whether existing policy definitions still reflect market realities. He notes that while real estate supports over 70 million jobs and contributes significantly to GDP, first-time homebuyers are increasingly priced out due to rising land costs and outdated policy thresholds.
For Budget 2026, Jagmohan outlines three strategic priorities. First, he calls for an update to the definition of affordable housing. The current cap of ₹45 lakh, he argues, is no longer relevant in major cities. Raising this limit to ₹75–80 lakh in metros could revive demand and align affordability benchmarks with urban income levels.
Second, Jagmohan stresses the need for tax rationalisation, particularly lower GST on under-construction properties and simpler input tax credit mechanisms. These steps could reduce acquisition costs for buyers while improving efficiency for developers.
Finally, he points to structural reforms such as single-window approvals and infrastructure status for the sector. These changes, he says, would shorten project timelines, reduce borrowing costs, and encourage investment in emerging segments like senior living and green housing. In his view, Budget 2026 must look beyond short-term transactions and support real estate as a socially impactful pillar of India’s long-term growth vision.
Retail Real Estate: Opportunity Meets Competition
While housing and workspaces focus on domestic policy reforms, retail real estate is increasingly shaped by global trade dynamics. Anuj Kejriwal, CEO – Retail Leasing and Industrial & Logistics at ANAROCK Group, says India’s retail real estate market has entered 2026 on relatively strong footing.
Organised retail continues to expand across metros and tier 2 and 3 cities, with leading brands planning aggressive store network growth in emerging markets. Malls remain key social and leisure destinations, while premium high streets retain their relevance among affluent shoppers.
However, Kejriwal cautions that new trade agreements, particularly the India-EU deal, will reshape the retail landscape. Lower tariffs could attract more international fashion, lifestyle, and food brands into Indian malls, benefiting exporters and increasing consumer choice. At the same time, domestic brands in categories such as cosmetics, spirits, and premium foods may face margin pressures and intensified competition.
He also highlights compliance challenges tied to global trade, including quality standards, sustainability norms, and labelling requirements. These add costs for Indian exporters and create administrative hurdles, especially for small retailers and MSMEs. Over time, carbon tariffs and trade diversion risks could further strain supply chains.
A Common Thread: Policy Must Match Reality
Across these varied perspectives, a clear message emerges. Real estate in 2026 is no longer a single-sector story. It intersects with enterprise growth, global trade, urbanisation, and sustainability. Industry leaders are not asking for blanket incentives, but for policy frameworks that recognise how the sector has evolved.
As Budget 2026 approaches, the challenge for policymakers will be to balance fiscal prudence with reforms that enable scale, affordability, and competitiveness. For an industry that touches jobs, cities, and consumption, the stakes could hardly be higher.
