Budget 2026 Expectations: Developers Urge Policy Support to Sustain Housing Demand and Urban Growth

As expectations build ahead of the Union Budget 2026, real estate industry leaders across Maharashtra are calling for focused policy interventions to strengthen housing affordability, sustain end-user confidence, and accelerate urban and infrastructure-led growth. Stakeholders believe the sector’s continued contribution to economic expansion, employment generation, and city transformation can be further amplified through enhanced tax incentives for homebuyers, infrastructure status for housing, rationalisation of GST on construction inputs, faster approvals, and sustained investments in connectivity, redevelopment, and sustainable development—measures that together can support balanced, inclusive, and long-term growth across residential, commercial, and luxury segments.

Prashant Sharma, President, NAREDCO Maharashtra
“The real estate sector continues to be a critical driver of economic growth, employment generation, and allied industries. In the upcoming Union Budget, the industry is hopeful of measures that further strengthen end-user demand, enhance affordability, and accelerate project execution. Granting infrastructure status to housing, especially affordable and mid-income segments, would significantly improve access to institutional finance and reduce borrowing costs for developers.
We strongly urge the government to revisit tax benefits for homebuyers by increasing the deduction limits on home loan interest and principal repayment under Sections 24(b) and 80C, which have remained unchanged for years. Rationalization of GST on construction materials and clarity on input tax credit would also help ease cost pressures. Additionally, faster approvals, policy support for redevelopment and urban housing, and incentives for sustainable and green developments will go a long way in supporting the sector’s long-term, inclusive growth.”

Kaushal Agarwal, Chairman, The Guardians Real Estate Advisory
“As the Union Budget 2026 approaches, the real estate sector will be watching closely for policy continuity and targeted measures that further strengthen housing affordability and sustain end-user confidence. The market has demonstrated strong resilience over the past year, supported by steady sales across major cities and rising participation from genuine homebuyers. In this context, calibrated tax relief for buyers, particularly in the mid-income and affordable segments, such as enhanced deductions on home loan interest and principal, along with a relook at stamp duty and registration charges, could meaningfully ease the cost of ownership and encourage first-time buyers.
"Equally important will be the government’s continued focus on urban infrastructure, metro connectivity, and redevelopment-led growth, which are key to unlocking new demand corridors and improving city livability. Greater clarity and consistency in taxation, including a rational approach to levies on under-construction properties, can further strengthen buyer sentiment and developer confidence. Together, these measures can support balanced, inclusive growth while reinforcing real estate’s role as a stable, long-term contributor to India’s economic and urban development.”

Shilpin Tater, Managing Director, Superb Realty
“The real estate sector continues to be a key driver of economic growth, employment generation, and urban transformation. As we approach the Union Budget, the industry is optimistic about policy measures that enhance project viability and sustain end-user demand across both residential and commercial segments. Granting infrastructure status to housing, improving access to long-term and affordable financing, and facilitating ease of doing business will significantly support developers, especially in urban, redevelopment-led, and mixed-use markets.
We also expect the government to address rising construction costs through rationalisation of GST on key building materials and greater clarity on input tax credit. Faster approvals, policy support for redevelopment, and targeted incentives for green and sustainable developments will help improve supply efficiency. In the commercial real estate segment, a stronger budgetary focus on future-ready office and business spaces anchored in thoughtful design, sustainability, employee well-being, and technology integration will be crucial. Incentives for green-certified and energy-efficient buildings, technology-enabled smart workspaces, and continued investment in urban infrastructure will enable developers to create high-quality assets that enhance productivity, occupier experience, and align with evolving business needs and global standards.”

Kamlesh Thakur, Co-Founder & Managing Director, Srishti Group
“The real estate sector remains a key pillar of India’s economic growth and urban transformation. In the forthcoming Union Budget, we expect policy measures that strengthen housing affordability, improve project viability, and accelerate urban development. Increasing tax benefits for homebuyers and extending interest subsidy schemes will go a long way in supporting genuine end-user demand, particularly in the affordable and mid-income segments.
As cities evolve, the focus must shift from mere connectivity to true accessibility. Accelerating critical infrastructure such as the Goregaon–Mulund Link Road, metro corridors, and key arterial routes will unlock new micro-markets and meaningfully compress travel time. From a developer’s perspective, faster regulatory approvals, single-window clearances, improved access to long-term capital, rationalisation of GST on construction materials, and incentives for sustainable development are essential enablers. Together, these measures will empower the sector to deliver high-quality housing while driving inclusive and long-term urban growth.”

Shraddha Kedia-Agarwal, Director, Transcon Developers
“In the forthcoming Union Budget, we expect policy measures that further strengthen housing affordability, provide greater ease of doing business, and support timely project execution. Enhancing tax benefits for homebuyers and ensuring easier access to long-term, low-cost funding will help sustain end-user confidence across housing segments, including luxury housing and mixed-use developments.
Luxury residences, quality commercial assets, and India’s strong appeal among NRIs have emerged as important demand drivers, and policy clarity on taxation, repatriation norms, and investment-friendly regulations will further strengthen this segment. Equally important is a focus on accelerating urban infrastructure and redevelopment-led growth. Fast-tracking key connectivity and accessibility projects such as metro corridors, arterial road networks, and last-mile infrastructure will unlock new growth pockets across the city. Rationalization of GST on construction inputs, faster approvals, and incentives for sustainable and green developments will enable developers to deliver high-quality urban assets while creating long-term value for homebuyers, investors, and the city.”

Gaurav Varma, Director, ORA Group
“The real estate sector continues to be a vital enabler of urban growth and economic momentum. Strengthening tax incentives for homebuyers and ensuring access to long-term, cost-efficient funding will help sustain healthy end-user demand across segments.
In addition to apartments, plotted developments and second homes are witnessing rising interest, driven by improved infrastructure, work-from-anywhere trends, and the aspiration for lifestyle-led ownership. Luxury housing and redevelopment-led projects are gaining strong traction in urban markets, driven by evolving lifestyle preferences and infrastructure-led accessibility. Fast-tracking key infrastructure projects, metro corridors, and arterial road networks will be critical in unlocking new micro-markets and enhancing livability. Rationalization of GST on construction materials, faster approvals, and incentives for sustainable developments will further enable developers to create high-quality residential assets that deliver long-term value to homebuyers and the city.”

Dhruman Shah, Promoter, Ariha Group
“In the forthcoming Union Budget, we expect policy measures that improve project viability, streamline approvals, and enhance housing affordability for end users. Strengthening tax incentives for homebuyers and ensuring easier access to long-term, low-cost funding will help sustain demand across segments, including premium and luxury housing.
Luxury real estate has emerged as a strong growth segment, driven by discerning buyers seeking larger homes, better amenities, and well-located addresses. Redevelopment projects too have played a crucial role in upgrading ageing urban infrastructure and delivering high-quality urban living. Faster clearances, single-window approvals, rationalization of GST on construction materials, and incentives for sustainable and green developments will significantly ease execution challenges. Continued focus on infrastructure creation and last-mile connectivity will further support redevelopment-led growth and enable the delivery of globally benchmarked residential assets.