Expectations of Real Estate from Union Budget 2026

Ms. Manju Yagnik, Vice Chairperson of Nahar Group and Senior Vice President of NAREDCO- Maharashtra.

The real estate sector is looking to Budget 2026 for measures that can meaningfully expand homeownership and strengthen the residential ecosystem, particularly for first-time and mid-income buyers who are increasingly impacted by high property prices and borrowing costs. The recent repo rate reduction has provided a positive signal for the housing market, improving affordability and sentiment, and the Budget offers an opportunity to build on this momentum through targeted fiscal support.

A key expectation is a renewed focus on reducing the effective cost of home loans. Enhanced interest subventions, longer and more flexible loan tenures, and targeted incentives for first-time buyers can help convert lower policy rates into real EMI relief, especially in large urban centres where affordability remains stretched.

There is also a need to revisit housing incentive frameworks to align eligibility thresholds with current market realities. Updating income and property value limits in line with rising urban prices can ensure benefits reach genuine.

Mr Tanuj Shori, Founder and CEO, Square Yards

The Indian housing market is clearly moving out of a luxury-led upcycle and into a more value-driven phase, with the mid-income segment poised to anchor growth as premium demand begins to stabilise. From the 2026 Union Budget, one should expect a sharper focus on improving affordability through enhanced tax relief for mid-income homebuyers, higher interest deduction limits and sustained investment in urban infrastructure. Equally important is policy support that encourages supply in the affordable and mid-market segments, as recent launches have been disproportionately skewed towards higher ticket sizes. A budget aligned to these realities can strengthen end-user demand, improve price-to-income dynamics and support a more balanced and sustainable phase of urban housing growth.

Mr Badal Yagnik, CEO & Managing Director at Colliers India

“Budget 2026 is expected to prioritize growth across economic sectors and usher in equitable real estate development through policy incentives and tax rebates. The Union Budget is likely to serve as a guiding tool balancing fiscal discipline alongside growth – keeping India globally competitive in key sectors including real estate.  Standardization and revision of affordable housing criteria to reflect price reality of Tier I cities can provide a demand-side boost to residential real estate. Also, supply side push through infrastructure augmentation and capacity building can trigger long-term growth levers across real estate segments. Furthermore, real estate democratization and retail investor participation can be encouraged by making REITs and SM-REITs more attractive. While Indian real estate is at the cusp of an accelerated growth trajectory across asset classes, the upcoming budget should incentivize sustainability adoption in built structures and holistically revitalize urban development plans. Most importantly, the budget needs to lay the foundation for sustained long-term growth, cushioning the impact of global volatility and trade frictions to an extent.”