Budget 2026: Driving Housing Affordability and Green Building in Real Estate

As Budget 2026 approaches, real estate developers, investors and allied industries are looking to the government for policy continuity, targeted fiscal support and structural reforms to sustain momentum in a sector increasingly viewed as a pillar of India's long-term growth story. Industry leaders believe the upcoming Budget presents an opportunity to deepen confidence across residential, commercial and mixed-use real estate segments. Real Estate as Resilient Investment Option Robin Mangla, President of M3M India, emphasizes that amid global and domestic volatility, real estate continues to stand out as a resilient, long-term investment option. He believes Budget 2026 can strengthen the sector's role not just as a wealth-preservation asset, but also as a catalyst for urban transformation. Key Requirements: Details Policy Framework: Stable and predictable policies for premium residential and mixed-use developments Taxation: Rationalisation of taxation for homebuyers Capital Access: Easier access to long-term institutional capital Approvals: Faster approvals and single-window clearances Sidharth Chowdhry, Managing Director of Dalcore, expects policy continuity and selective fiscal support to drive demand in premium and luxury housing markets such as Gurugram. He highlights that rationalisation of stamp duty and enhanced tax benefits on home loan interest could significantly boost end-user sentiment, while access to low-cost, long-term financing would help developers deliver high-quality projects in globally competitive micro-markets. Affordable Housing and Regulatory Reforms From the affordable and mid-income housing perspective, Manoj Gaur, CMD of Gaurs Group, hopes the Budget builds on recent momentum. He expects continued emphasis on infrastructure spending, along with an accommodative interest rate environment to support housing demand. Gaur reiterates key industry demands including: Widening the scope of EWS and PMAY schemes Reinstating benefits under Section 80EEA for first-time buyers Granting industry status to real estate Implementing single-window clearance mechanism Dr Gautam Kanodia, Founder of KREEVA and Kanodia Group, highlights industry status as a critical reform that could improve access to organised capital and support long-gestation housing projects. He believes sustained infrastructure investment, especially in NCR, combined with supportive liquidity conditions, can unlock the next phase of real estate-led economic growth. Infrastructure Investment as Growth Driver The broader infrastructure push remains central to real estate expectations. Rajan Luthra, CFO of ACE-Action Construction Equipment Ltd, notes that with public capex continuing to anchor economic momentum, demand for construction equipment is likely to recover through private capex, exports, defence and large infrastructure projects including airports, railways and freight corridors. Growth Enablers: Impact Areas GST Rationalisation: Improved project economics Lower Interest Rates: Enhanced affordability Improved Liquidity: Accelerated project execution Private Investment: Crowding in of capital Mohit Goel, Managing Director of Omaxe Ltd, believes the focus should remain on long-term clarity rather than short-term stimulus. He sees strong potential in Tier 2 and Tier 3 cities, supported by urban infrastructure, transport connectivity and housing-linked development. Sustainability and Capital Market Reforms From an investor and capital markets perspective, Binitha Dalal, Founder and Managing Partner at Mt. K Kapital, stresses the importance of fiscal prudence and measures that enhance India's resilience to global shocks. For real estate, she highlights the need for housing affordability, GST rationalisation on construction and redevelopment, and clearer policy frameworks for REITs and alternative capital pools. Dalal also expects greater incentives for green buildings and sustainable construction to future-proof the sector. Amrita Gupta, Director at Manglam Group, echoes the focus on sustainability and affordability, particularly for cities like Jaipur, where demand is increasingly end-user driven. She believes a stable interest rate environment, incentives for green construction and clarity on redevelopment policies can support long-term, quality-led housing demand. Emerging Segments and Quality-Driven Growth Looking beyond traditional housing, Aditya Kushwaha, CEO and Director of Axis Ecorp, points to the growing potential of the holiday home segment, especially in destinations like Goa. He expects continued infrastructure development and tourism-led growth, along with easier ownership norms, to encourage deeper NRI participation. Across industry voices, a common theme emerges: Budget 2026 is not expected to deliver sweeping announcements, but rather reinforce stability, execution efficiency and long-term confidence. With sustained infrastructure investment, targeted fiscal measures, easier capital access and a sharper focus on quality and sustainability, industry leaders believe real estate can play a larger role in employment generation, urban development and India's journey towards becoming a globally competitive economic powerhouse. 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