Budget 2026 expectations: Real estate eyes tax relief, infra push and ease of doing business

As Finance Minister Nirmala Sitharaman readies the Union Budget on February 1, her ninth in a row, the real estate sector is looking for policy continuity and targeted reforms to maintain recent momentum. Given housing’s strong link to jobs, infrastructure and consumption, industry players see the Budget as crucial for the sector’s next growth phase. Key demands include widening affordable housing schemes such as EWS and PMAY, restoring Section 80EEA tax benefits for first-time buyers, granting industry status to real estate and introducing a single-window clearance system to cut approval delays and improve efficiency.

Pyush Lohia, Director at Lohia Worldspace, said the focus of Budget 2026 should remain on stability and confidence-building amid global uncertainties. “Continued rationalisation of personal income tax is expected to ease the burden on the middle class and boost disposable incomes,” he said, adding that regulatory clarity and infrastructure-led capital expenditure—particularly in urban development, logistics and housing—would be crucial for driving investment and employment. He also highlighted the importance of MSME support through easier credit access and GST simplification, along with incentives for green construction and sustainable practices.

Premium housing

From the perspective of premium and branded housing, Anil Mittal, Chief Financial Officer at Smartworld Developers, said consistent taxation, expanded institutional financing and streamlined regulations are essential to maintaining investor confidence and end-user demand. He emphasised that continued investment in urban infrastructure, mass mobility and integrated city planning significantly enhances the appeal of high-end developments. “A well-calibrated, growth-focused Budget can enable real estate to contribute more meaningfully to employment, capital inflows and India’s urban future,” Mittal said.

Housing in Tier 2 and Tier 3 cities

Abdulkader Bengali, Managing Director of Hansgrohe India, pointed to the rising aspirations of homebuyers in Tier 2 and Tier 3 cities, where demand is growing for premium, well-designed and sustainable living spaces. He said policy frameworks that strengthen infrastructure, urban planning and housing ecosystems would be critical to meeting these expectations while preserving affordability and long-term value.

For mid-income and non-metro housing, Mohit Goel, Managing Director of Omaxe Ltd, said the Budget should prioritise long-term clarity over short-term stimulus. He pointed to strong potential in Tier 2 and Tier 3 cities, supported by infrastructure development, improved connectivity and housing-linked growth. According to Goel, policies that promote public-private partnerships, simplify approvals and strengthen buyer confidence can help align private capital with broader development goals.

Infrastructure spending

Highlighting regional priorities, Dr Gautam Kanodia, founder of KREEVA and the Kanodia Group, stressed the need for sustained infrastructure investment and supportive liquidity measures in the National Capital Region. He noted that targeted public spending, combined with an enabling policy environment, could accelerate housing demand while also stimulating allied industries and job creation.

Infrastructure spending remains a central theme across industry expectations. Rajan Luthra, CFO of ACE-Action Construction Equipment Ltd, said continued public capex would support economic activity and help revive demand for construction equipment. He also cited private capex, exports, defence contracts and large infrastructure projects such as airports and freight corridors as important demand drivers. According to Luthra, fiscal measures such as GST rationalisation, lower interest rates and improved liquidity could further boost investment and execution.

Amid domestic and global uncertainties, Robin Mangla, President of M3M India, described real estate as a resilient, long-term investment asset. He called for a predictable policy regime, rationalisation of homebuyer taxes, greater access to long-term institutional funding and faster approvals through single-window systems.

Echoing similar views, Sidharth Chowdhry, Managing Director at Dalcore, said policy continuity and selective fiscal support would be key to sustaining premium and luxury housing demand, particularly in markets such as Gurugram. He highlighted the need for streamlined stamp duty and enhanced tax relief on home loan interest to support buyer sentiment.