As India approaches the Union Budget 2026, real estate industry leaders are voicing clear expectations that reflect evolving market dynamics, shifting buyer preferences, and the sector’s critical role in driving economic growth. Luxury and premium homebuyers, in particular, are entering 2026 with more nuanced demands, seeking not just high-end residences but curated, investment-grade living experiences. Industry experts argue that targeted policy measures can accelerate housing demand, streamline project execution, and unlock high-value transactions across the country.
Manish Agarwal, Managing Director of Satya Group and President of CREDAI Haryana, highlighted the growing sophistication among buyers. “Luxury homebuyers are looking for more than premium residences—they want curated, investment-grade living experiences,” he said. “We believe the upcoming Budget should focus on rationalising stamp duty, enhancing tax benefits on home loan interest, and improving access to low-cost financing. Revisiting the Rs 10 crore cap on capital gains reinvestment under Sections 54 and 54F, resolving TDS challenges for NRI buyers, and enabling fractional ownership in marquee assets will be critical to unlocking high-value transactions.”
Agarwal added that these measures would not only accelerate the execution of ultra-premium projects but also democratise access to luxury real estate. “The right policies can strengthen investor confidence, stimulate end-user demand, and reinforce India’s position as one of the world’s fastest-growing luxury housing markets,” he said.
The emphasis is not limited to luxury segments. Prashant Sharma, President of NAREDCO Maharashtra, stressed the broader economic impact of the real estate sector, which remains a major driver of employment, allied industries, and capital formation. “The industry is hopeful that the Union Budget will include measures to strengthen end-user demand, enhance affordability, and accelerate project execution,” he noted. Sharma suggested that granting infrastructure status to housing, particularly in affordable and mid-income segments, would improve access to institutional finance and reduce borrowing costs for developers.
He also called for revisiting tax benefits for homebuyers by increasing deduction limits on home loan interest and principal repayment under Sections 24(b) and 80C, which have remained stagnant for years. “Rationalisation of GST on construction materials and clarity on input tax credit would also help ease cost pressures,” Sharma said. In addition, faster approvals, policy support for redevelopment and urban housing, and incentives for sustainable and green development are crucial to ensure long-term, inclusive growth.
Together, these perspectives underscore a central theme: the upcoming Union Budget is not just an economic exercise but a potential catalyst for structural growth in India’s real estate sector. Experts emphasise that targeted interventions—whether tax rationalisation, financing support, or regulatory clarity—can accelerate project execution, enhance buyer confidence, and enable developers to respond effectively to evolving market demands.
With increasing wealth creation, rising disposable incomes, and growing demand for high-quality, well-located homes, policy support can play a decisive role in ensuring that the real estate market remains robust, inclusive, and investment-friendly. Both luxury and mass-market segments are seeking measures that promote efficiency, affordability, and sustainable growth, reflecting a maturing industry that is ready for long-term stability.
As the Budget approaches, developers, investors, and buyers alike will be closely watching for announcements that can support the sector’s continued growth, help meet rising aspirations, and position India as a global hub for high-quality residential real estate.
