Budget 2026: Real Estate Sector Seeks Tax Relief, Policy Clarity, and Infrastructure Push

Published by Construction Perts

As the Union Budget 2026 approaches, the Budget 2026 real estate sector has set strong expectations for the government. Industry stakeholders believe that the upcoming budget will play a key role in shaping housing demand, investment sentiment, and long-term urban growth. Developers, consultants, and market experts are calling for a balanced mix of real estate tax relief Budget 2026, clear policies, faster approvals, and a continued infrastructure push in Budget 2026 to support the sector's steady recovery.

Over the past few years, housing demand in India has remained resilient. However, rising land prices, higher construction costs, and increased home loan interest rates have made homes less affordable for many buyers. While incomes have grown slowly, property prices and loan sizes have risen much faster. This gap has made it difficult for middle-income and first-time buyers to enter the housing market. As a result, the real estate tax relief Budget 2026 has become one of the sector's most urgent demands.

A major focus area is homebuyer tax benefits Budget 2026. Industry leaders note that existing tax deductions on home loans no longer reflect today's market realities. Income limits and deduction caps were set years ago, when property prices and loan amounts were much lower. Revising these limits, increasing deductions under Section 80C, and offering higher interest deductions on housing loans could significantly improve affordability and restore buyer confidence.

Another key expectation is the Affordable Housing Policy Budget 2026. Affordable housing continues to see strong demand, especially in urban outskirts and emerging cities. Developers say that outdated definitions, rising input costs, and limited incentives have affected project viability. Updating price thresholds, rationalising GST on construction materials, and offering targeted benefits can help revive supply and meet the great unmet demand for affordable homes.

On the supply side, developers are seeking faster approvals and clearer regulations. Multiple clearances from different authorities often delay projects and increase costs. A single-window clearance system and transparent approval timelines can reduce delays, improve execution efficiency, and ensure the timely delivery of homes. Clearer policies also help attract long-term domestic and institutional investment into the sector.

Beyond tax and regulatory reforms, the infrastructure push Budget 2026 is seen as the most powerful driver of real estate growth. Investments in highways, expressways, metro rail, airports, and social infrastructure have already transformed many regions. Improved connectivity has opened new housing corridors, reduced travel time, and increased demand in surrounding areas. Continued infrastructure spending can further unlock new micro-markets and support planned urban expansion.

Industry experts highlight that infrastructure-led development is particularly important for Tier II and Tier III cities. Better roads, transport networks, schools, and healthcare facilities are making these cities attractive housing destinations. This shift can reduce pressure on major metros while promoting balanced and sustainable urban growth.

Bhupindra Singh, COO, RISE Infraventures, says:

‘’Budget 2026 should recognise the significant shift in how buyers approach property. With larger ticket sizes, longer loan tenures, and extended holding periods, current tax rules no longer reflect market realities. Revising income limits, increasing deductions on home loans, and updating capital gains taxation are essential to make housing more affordable and rebuild buyer confidence. The sector also expects higher deductions under Section 80C, which would enhance project viability, particularly in urban mid-segments. Focused support for affordable housing is crucial, as demand remains high. A careful approach to interest rates can encourage steady growth without speculation. Buyers today are financially prudent, long-term oriented, and value-conscious. Policies that align with these trends can improve purchasing power, motivate fence-sitters, and stabilise residential real estate, making real estate tax relief Budget 2026 a top priority.''

Market observers note that homes are now seen as long-term assets rather than short-term purchases. Buyers are more financially aware, cautious, and focused on value and stability. Policy certainty and stable tax rules are therefore essential for maintaining confidence and encouraging long-gestation projects.

The real estate sector also plays a major role in job creation and economic growth. From construction and finance to manufacturing and services, the sector supports a wide range of industries. A supportive Budget 2026 can strengthen this ecosystem and improve real estate's contribution to India's GDP.

As expectations build, the industry hopes that Budget 2026 will focus on long-term reforms rather than short-term announcements. Measures that improve affordability, speed up approvals, strengthen infrastructure investment, and provide policy clarity can help create a stable and sustainable real estate market. A well-balanced budget could support homebuyers, developers, and investors alike, while shaping India’s urban future for years to come.

Q1. What are the key expectations of the real estate sector from Budget 2026?

A1. The real estate sector expects tax relief, clear policies, faster project approvals, homebuyer tax benefits, and a strong infrastructure push Budget 2026 to support growth and affordability.

Q2. What is the role of homebuyer tax benefits in Budget 2026?

A2. Homebuyer tax benefits Budget 2026 can improve affordability by increasing deductions on home loans, revising income limits, and updating Section 80C limits, making housing more accessible for buyers.

Q3. How will affordable housing be addressed in Budget 2026?

A3. The Affordable Housing Policy in Budget 2026 aims to update price thresholds, rationalise GST, and provide incentives to developers, helping meet the growing demand in urban and emerging cities.

Q4. Why is infrastructure spending important for real estate growth?

A4. An infrastructure push Budget 2026 including roads, metros, airports, and social amenities, improves connectivity, unlocks new housing markets, and supports balanced urban development.

Q5. How can Budget 2026 boost buyer confidence in real estate?

A5. Clear tax rules, policy certainty, higher loan deductions, and faster approvals can restore affordability, improve purchasing power, and give buyers the confidence to invest in homes.