Budget 2026 Real Estate Wishlist: Tax Relief, Infrastructure Push and Ease of Doing Business

As the Union Budget 2026–27 approaches, India’s real estate industry has laid out a set of key policy expectations aimed at strengthening the sector’s contribution to national development and aligning it with the government’s long-term Viksit Bharat goals. The sector — which supports hundreds of allied industries and plays a major role in urbanisation, jobs and economic growth — is calling on policymakers to deliver structural reforms, targeted incentives and continued focus on infrastructure-led urban expansion in the upcoming Budget.

Industry leaders want real estate to be granted full “industry status,” which they say would improve access to institutional capital, lower borrowing costs and expand financing options — helping developers scale projects more efficiently while supporting job creation and future investment. Tax reforms are also high on the wishlist, with calls for higher deductions on home loan interest, rationalised GST on construction inputs and relief on rental income taxes to boost housing demand and affordability.

A strong emphasis is also placed on affordable housing, with stakeholders urging a revisit of incentive schemes such as credit-linked subsidies and suggestions to expand housing price caps so more units can qualify for benefits. Proposals include extending or reintroducing benefits like Section 80EEA, adjusting definitions of affordable housing and enhancing interest subsidies under programmes like PMAY to lower costs for first-time and middle-income homebuyers.

Infrastructure-led growth remains central to expectations from the Budget. Continued government spending on transport, urban connectivity and regional development is expected to unlock new markets, particularly in Tier-II and Tier-III cities, where improving access via roads, rail, metros and last-mile connectivity can stimulate demand for retail, residential and mixed-use developments. Such infrastructure investments are seen as critical to integrating real estate more deeply with broader economic and social development goals under Viksit Bharat.

In addition, there are calls for ease of doing business improvements — such as single-window clearance systems, land record digitisation and streamlined regulatory processes — to reduce project delays, cut costs and enhance investor confidence. Combined with incentives for sustainable and green construction, and greater clarity on REITs and alternative capital vehicles, the industry believes a forward-looking Budget can help sustain momentum, boost housing demand and support India’s growing urban footprint.