As India prepares for the Union Budget 2026, the real estate and housing sector stands at a critical juncture. After witnessing strong value growth driven by premium housing and urban demand, the market is now showing signs of volume moderation, affordability stress, and supply imbalances. Industry leaders believe that the upcoming Budget can play a defining role in stabilising growth, restoring buyer confidence, and ensuring sustainable long-term development.
From institutional investors and fund managers to regional developers and brokerage leaders, expectations are converging around three major themes—housing affordability, infrastructure-led urban expansion, and policy reforms to attract long-term capital.
Demand Revival and Institutional Capital Are Top Priorities
Mr. Ankur Jalan, CEO of Golden Growth Fund, a Category II real estate focused Alternative Investment Fund, believes that Budget 2026 must strengthen the demand side of housing while making India’s real estate ecosystem more institutional and globally attractive.
According to him, extending tax incentives for homebuyers is essential to revive demand, especially in established urban markets such as Delhi, Mumbai, and Bengaluru. He also expects the government to continue investing heavily in urban infrastructure such as transport systems, last-mile connectivity, and sustainable utilities, which directly enhance real estate valuations and livability.
Equally important, Mr. Jalan emphasises the need for stronger incentives for Alternative Investment Funds and institutional investors. He points out that a well-regulated and incentivised AIF ecosystem will streamline real estate investments, reduce speculative activity, and bring transparency and professionalism into the sector.
A growth-oriented and balanced Budget, he believes, will not only support smoother project execution but also significantly improve confidence among both homebuyers and global investors.
Dholera and New Urban Hubs Look to Budget 2026 for Infrastructure and SEZ Reforms
For emerging regions such as Dholera in Gujarat, Budget 2026 carries transformational significance. Mr. Lalit Parihar, Managing Director of Aaiji Group, expects the government to deepen its focus on infrastructure-led urbanisation.
He highlights the importance of continued spending on roads, logistics corridors, airports, bullet train connectivity, industrial zones, and smart city development. These investments are vital for unlocking the economic potential of new growth hubs like Dholera, which are being positioned as India’s next industrial and commercial centres.
Mr. Parihar also hopes for renewed policy attention on Special Economic Zones. He believes greater flexibility and fiscal incentives for SEZ developers can fast-track industrial parks and mixed-use real estate developments, creating jobs and boosting regional investment.
On the housing front, he expects rationalisation of GST, continued homebuyer tax benefits, and easier access to institutional finance for developers. He further calls for incentives for green buildings, sustainable construction, faster approvals, and lower compliance costs to improve project feasibility and execution timelines.
A Budget that combines fiscal discipline with long-term urban planning, he says, will strengthen investor confidence and accelerate development across Gujarat and other strategically important regions.
Affordable Housing Needs Immediate Policy Support
While luxury and premium housing have driven headline growth, the mass housing segment is now facing supply shortages. Mr. Vijay Harsh Jha, Founder and CEO of VS Realtors, warns that the sector is showing early signs of slowdown in volume sales—especially in homes priced below ₹1 crore, where real demand remains strongest.
He believes this mismatch between supply and affordability can only be corrected through timely government intervention. Policy support in the form of tax breaks for developers, access to affordable land, and financing incentives could help ensure that new housing supply is aligned with actual buyer demand.
He also stresses the importance of continuing housing loan subsidies and tax benefits for homebuyers, which played a critical role in driving residential growth over the last three years.
Mr. Jha adds that while premium housing has delivered strong value growth, rising job uncertainty, slower income growth, and global economic risks make this trend difficult to sustain. A more inclusive and balanced housing strategy, focused on middle-income and affordable buyers, will be essential for maintaining long-term market stability.
Budget 2026 Could Define the Next Phase of India’s Property Market
Taken together, these perspectives underline a clear industry consensus. Union Budget 2026 must focus on affordability, institutional funding, and infrastructure-driven urban expansion. With the right mix of tax incentives, financial reforms, and development-friendly policies, the government has an opportunity to stabilise demand, reduce supply gaps, and attract global capital into Indian real estate.
A well-calibrated Budget will not only strengthen housing and commercial property markets but also support employment, banking stability, and economic growth across the country.
