Kolkata Realtors Urge Budget 2026 Support With Tax Breaks and Affordable Housing Reforms

Real estate developers in Kolkata are calling on the Union Budget 2026 to include targeted measures designed to reignite demand in the housing market, particularly for mid-income homebuyers. Industry representatives have urged the central government to adjust housing policy norms that have not kept pace with rising land prices and construction costs, arguing that outdated thresholds are dampening buyer interest and slowing project activity.

A key demand from the developer community is for enhanced tax relief for homebuyers, including more generous deductions on home loan interest and rationalised GST rates for under-construction properties — changes that they say could make housing more affordable and stimulate sales. They have also advocated for a revision of the definition of “affordable housing”, suggesting that the current price cap does not reflect present-day costs in major cities, which limits the effectiveness of existing benefits tied to that classification.

Industry leaders believe that aligning fiscal incentives and tax structures with current market realities could revive the stagnating real estate sector, attract new buyers and support stalled and ongoing developments across the region. The Budget is expected to be presented on February 1, 2026, giving policymakers an opportunity to address these concerns.