With the Union Budget 2026 around the corner, India’s real estate sector is once again looking to the government for policy clarity, tax relief, and long-term support. From affordable housing to stalled projects, industry leaders believe the coming Budget could set the tone for sustained growth.
Across regions and segments, a few common themes stand out: higher home loan tax benefits, industry status for real estate, and faster project approvals.
Affordable Housing Takes Centre Stage
Affordable and mid-income housing remains the sector’s biggest expectation. Dinesh Gupta, President of CREDAI West UP, says the government must revisit existing tax benefits to make homeownership more accessible. He points to the need for higher exemptions on home loan interest and relief under Sections 80C and 24(B) of the Income Tax Act.
Echoing this view, Himanshu Garg, Director of RG Group, notes that the recent repo rate cut has already improved market sentiment. According to him, a Budget focused on affordable housing and infrastructure investment could further boost buyer confidence and revive demand.
Call for Higher Home Loan Tax Deductions
Several developers are urging the government to substantially raise the home loan interest deduction limit. Dinesh Jain, Managing Director of Exotica Housing, calls the current ₹2 lakh cap under Section 24(b) outdated. He suggests increasing it to ₹4–6 lakh and extending the benefit to the new tax regime as well.
Suresh Garg, CMD of Nirala World, shares a similar view, advocating for an increase to at least ₹5 lakh. He adds that a 100% deduction on home loan interest would provide a strong push to homebuyers and stimulate the market.
Industry Status and Stalled Projects in Focus
Granting industry status to real estate remains a long-pending demand. Developers believe this step would ease access to institutional funding, reduce regulatory hurdles, and improve investor confidence. Both Dinesh Gupta and Himanshu Garg stress that recognising real estate as an organised industry could significantly improve the investment climate.
There is also a strong call for support to stalled projects. Expanding affordable funding mechanisms and strengthening initiatives like the SWAMIH Fund, as suggested by Dinesh Jain, could help complete delayed developments and protect homebuyers.
Faster Approvals and Commercial Growth
Beyond housing, commercial and mixed-use projects are also seeking attention. Atul Vikram Singh, Founder of Vision Business Park, says policy stability and simplified tax structures for commercial developments are crucial. Incentives for REITs, office spaces, and business parks could attract investment and generate employment.
He also highlights the need to digitise and streamline single-window clearance systems, a move that could significantly cut project delays and improve ease of doing business.
A Budget That Sets the Direction
As expectations build, real estate leaders are looking for a Budget that goes beyond short-term relief. The sector hopes Budget 2026 will offer a clear, long-term vision that supports housing demand, accelerates approvals, and strengthens confidence across residential and commercial markets.
