As India prepares for the Union Budget 2026, the real estate sector finds itself at an important inflection point. Demand across housing, offices, logistics, and emerging asset classes has held up well over the past year, but the next phase of growth will depend heavily on policy support, cost rationalisation, and long-term financing clarity. Industry leaders are largely aligned in their expectations: the sector does not need dramatic interventions, but it does need thoughtful reforms that reflect current market realities.
From affordable housing definitions and GST reforms to infrastructure-led growth and support for Tier II cities, Budget 2026 is being seen as a moment to consolidate gains and prepare the ground for sustainable expansion.
Housing Demand, Affordability, and Policy Continuity
Navin Makhija, Managing Director of The Wadhwa Group, describes the sector’s current phase as one of “measured moderation,” where stability will hinge on supportive policy measures and access to finance. He underlines real estate’s role as a powerful economic multiplier, driving employment and allied industries while supporting India’s urbanisation journey.
Makhija points to the need for direct interventions that improve housing affordability for end-users. This includes stronger homebuyer-linked tax benefits and a long-overdue revision of the definition of affordable housing. According to him, current thresholds no longer reflect urban land and construction costs. He also highlights GST rationalisation on construction inputs and works contracts as critical to easing cost pressures and ensuring timely project delivery. With infrastructure investments shaping micro-markets such as Thane and the BKC–Kurla corridor, he believes policy continuity and long-term financing clarity will be key to predictable sectoral growth.
Sarthak Seth, Chief Sales and Marketing Officer at Tata Realty and Infrastructure Ltd., echoes similar concerns around affordability. He argues that Budget 2026 should redefine affordability by raising the cap to ₹80–90 lakh to reflect current market realities. Seth also calls for higher home loan deductions, lower GST, and continued infrastructure investment to bridge the gap between rising aspirations and quality housing supply. With interest rates stabilising and urbanisation accelerating, he sees the upcoming Budget as a critical opportunity to make homeownership more accessible.
Managed Workspaces and Enterprise Infrastructure
Beyond housing, the commercial real estate segment, particularly managed workspaces, is also seeking formal recognition. Kunal Mehra, Co-CEO and President of Table Space, describes Budget 2026 as a pivotal moment to acknowledge managed offices as core enterprise infrastructure supporting India’s global capability centres and large corporate growth.
Mehra points to strong demand from global enterprises for fully managed workspaces that offer speed, scalability, and consistency across cities. He emphasises the need to rationalise GST on managed offices, currently taxed at 18 percent, by clearly differentiating them from hospitality. Such a move, he says, would reduce friction for occupiers and accelerate adoption. He also calls for incentives for green-certified, technology-led workspaces using AI and IoT, along with regulatory simplification measures such as single-PAN GST registration and support for expansion into Tier II and III cities.
Industrial, Warehousing, and Logistics Priorities
The industrial and logistics segment has been one of the strongest performers in recent years, supported by public capital expenditure and infrastructure-led initiatives. Anshul Singhal, Managing Director of Welspun One, highlights how policies such as PM Gati Shakti and industrial corridor development have strengthened connectivity and supply chains.
Looking ahead, Singhal believes Budget 2026 should address emerging real estate needs driven by e-commerce and quick commerce growth. This includes enabling compliant, well-planned urban and near-urban logistics infrastructure that supports faster deliveries while reducing congestion. He calls for clearer zoning and height norms, faster environmental approvals, and predictable regulatory frameworks to optimise land use. Singhal also sees an opportunity to strengthen SEZs as export-oriented hubs through simpler processes, better incentives, and integration with multimodal infrastructure, alongside easier access to long-tenor, lower-cost financing.
Tier II Cities Take Centre Stage
A recurring theme across industry voices is the rising importance of Tier II cities. Shekhar Patel, Managing Director and CEO of Ganesh Housing Limited, notes that the sector is entering the Budget discussion with strong demand momentum and improving maturity. He points to cities such as Ahmedabad and Jaipur, which are emerging as new engines of economic and commercial growth, supported by infrastructure upgrades and expanding business districts.
Patel stresses the need for accelerated investment in urban mobility, highways, metro connectivity, and planned business district development. He also calls for easier approvals, simplified compliance, and faster project clearances to reduce execution delays. With construction and financing costs rising, cost rationalisation support is another key expectation. Patel adds that with GCC expansion and the growth of AI-driven businesses and data centres, policy direction on power reliability, digital infrastructure, and sustainable building incentives will be crucial.
Capital, Compliance, and the Next Growth Cycle
Umesh Uttamchandani, Managing Director of DevX, frames the discussion in terms of structural change. He believes Indian real estate is moving beyond a metro-centric narrative, with Tier II hubs like Ahmedabad, Jaipur, Kochi, and Coimbatore emerging as parallel growth engines. According to him, these corridors are critical to addressing the nationwide inventory crunch.
Uttamchandani highlights expectations around comprehensive land digitalisation and progressive asset tokenisation frameworks, which he sees as catalysts for unlocking institutional capital at scale. He argues that improved liquidity will help align India’s development cycle with global standards and ensure new inventory meets evolving ESG and compliance benchmarks. In his view, developers who deliver metro-grade quality and compliance in emerging cities will thrive, while non-compliant assets risk becoming obsolete.
A Budget Focused on Stability and Long-Term Growth
Taken together, these perspectives point to a clear message for policymakers. The real estate sector is not asking for short-term stimulus, but for reforms that reflect current costs, evolving demand patterns, and the need for long-term capital. From housing affordability and GST rationalisation to infrastructure spending, regulatory clarity, and support for emerging cities, Budget 2026 has the opportunity to set the tone for the next phase of growth.
As demand broadens beyond metros and new asset classes gain traction, the sector’s expectations centre on predictability, ease of doing business, and policies that enable sustainable, inclusive expansion across India’s urban and industrial landscape.
