When the government presented last year’s Union Budget, real estate did not receive headline-grabbing sops. Instead, the sector benefited from a series of incremental changes over the year. Repo rate cuts, softer home loan rates, selective GST relief, and easing construction costs quietly helped the market regain balance.
A year later, the mood within the industry has shifted. The anxiety that defined earlier cycles has eased. Site visits have increased, bookings are steadier, and developers say buyers today are more deliberate than speculative. The market is not overheating, but it is no longer uncertain about its direction.
As Budget 2026 approaches, that sense of stability is exactly what the sector hopes policymakers will preserve.
Luxury housing wants fewer roadblocks
For developers at the premium end, expectations from the budget are focused on removing friction rather than introducing aggressive incentives.
Sandeep Agarwal, Executive Director, Finance and Group CFO, Elan Group, says the coming budget presents an opportunity to reinforce the sector’s structural strength.
“As India’s real estate sector enters a phase of sustained maturity, the Union Budget 2026 offers an opportunity to reinforce the structural strength of the market. Continued focus on improving access to organised credit, enabling smoother project execution and strengthening long-term confidence among discerning homebuyers and institutional capital will be critical to maintaining momentum. A clear, stable fiscal and regulatory framework that supports responsible growth can go a long way in building a resilient real estate ecosystem aligned with the evolving aspirations of urban India.”
In premium and luxury micro-markets such as Golf Course Road in Gurugram, developers are looking for continuity and targeted fiscal support. According to Sidharth Chowdhry, Managing Director, Dalcore, policy measures such as rationalisation of stamp duty and enhanced tax benefits on home loan interest could significantly boost end-user demand and investor confidence.
“Additionally, extending infrastructure status benefits and easy access to long terms, low cost financing for developers will help push high-quality project execution. With Gurugram emerging as a global residential and commercial hub, a forward looking budget can further strengthen NCR's position as a preferred destination for both domestic and global real estate investments.”
Navdeep Sardana, Founder of Whiteland Corporation, describes the current phase of luxury housing as one that prioritises stability over volumes. For ultra-high-net-worth buyers, the Rs 10 crore cap on capital gains reinvestment under Sections 54 and 54F has become a constraint. Revisiting this limit, he believes, could smoothen transactions at the upper end of the market.
Sardana also expects Budget 2026 to support ESG-aligned developments and technology-driven housing through green financing avenues. Easier access to capital, he says, would allow developers to focus more on execution and less on managing cash flow. For NRI buyers, unresolved issues around TDS on property transactions continue to weigh on sentiment.
Infrastructure, more than incentives, is driving demand
If there is one area where developers believe Budget 2026 can make a decisive impact, it is infrastructure.
Abhay Mishra, President and CEO of Jindal Realty, says housing demand is no longer shaped only by large metros. Tier-II cities are increasingly setting the pace, largely due to improved connectivity.
Sonipat, he points out, benefits from its location at the intersection of expressways, regional transit networks, and industrial corridors. This has translated into steady housing demand rather than short-lived spikes. Mishra believes that higher capital expenditure on urban infrastructure in such cities will deliver more durable outcomes than standalone buyer incentives. Tax benefits may spark interest, he says, but infrastructure converts interest into actual purchases.
Why Tier-II cities are no longer a side story
One clear shift this budget season is the growing prominence of Tier-II cities in real estate conversations. Demand is no longer concentrated only in traditional metros, and developers say this change is structural rather than cyclical.
Beyond affordability, a lifestyle shift
With Sonipat emerging as a residential and industrial extension of Delhi-NCR, developers expect Budget 2026 to strengthen policy support for high-growth peripheral markets. Rahul Singla, Director, Mapsko Group, believes increased infrastructure spending will play a key role.
“With Sonipat rapidly emerging as a key residential and industrial extension of Delhi-NCR, the real estate sector expects the upcoming Union Budget to strengthen policy support for high-growth peripheral markets. Sonipat's appeal to investors and end-users will be further enhanced by increased allocation of infrastructure development, particularly road, rail and last-mile connectivity. Additionally, the industry also looks forward to rationalisation of stamp duty, enhanced tax benefits on home loan interest, and easier access to institutional financing for developers. Such measure will push planned developments, improve housing affordability, and position Sonipat as a sustainable, well-integrated urban hub within the NCR.”
Affordable housing needs updating, not repackaging
Another recurring theme in pre-budget discussions is the definition of affordable housing. Developers argue that price caps fixed several years ago no longer reflect today’s land and construction costs, particularly in expanding urban clusters.
When price thresholds fall behind reality, incentives lose effectiveness and new supply becomes difficult to justify. Many in the industry believe that a pragmatic revision in Budget 2026 could ease pressure on project viability and revive supply in the affordable and mid-income segments, where demand remains intact but availability has declined.
A test of consistency, not ambition
Residential prices have risen over the past year, but without the sharp swings that typically alarm policymakers. Developers remain cautious with new launches, and sales are largely driven by genuine end-users rather than short-term investors.
That is why Budget 2026 is being watched less for bold announcements and more for signals of consistency. The industry is looking for reassurance that infrastructure spending will continue, homebuyers will not face sudden tax surprises, and policy direction will remain predictable.
If that balance is maintained, the recovery in real estate may not generate dramatic headlines. But it could deepen steadily, supported by broader geographic demand and a buyer base that appears far more grounded than it has been in years.
