As the Union Budget 2026 approaches, expectations within the real estate ecosystem are measured and pragmatic. Developers, advisors and workspace operators are not looking for dramatic interventions or short-lived stimuli. Instead, they are calling for policies that build confidence, improve affordability, and align with how India’s cities and work culture are actually evolving.
From premium housing to flexible workspaces, the message is consistent: clarity, predictability and execution will matter far more than headline-grabbing announcements.
Confidence over corrections in housing policy
Dipesh Garg, Real Estate Advisor and Co-Founder, SouthDelhi1, believes the housing sector needs a steady hand rather than policy shocks. In the premium residential segment, he notes, buyers today are deliberate and long-term in outlook, weighing total ownership costs rather than short-term price movements.
Policies that help moderate the overall cost of ownership could unlock genuine end-user demand. Garg points to measures such as stamp duty rationalisation, clearer tax benefits on home loans, and smoother financing mechanisms as ways to encourage buying without distorting prices. For investors and developers alike, predictability is more valuable than temporary incentives.
Urban infrastructure and redevelopment are another priority. Garg highlights initiatives such as the Delhi government’s Transit-Oriented Development policy, which promotes compact, mixed-use and walkable neighbourhoods around transit corridors. By integrating housing with mobility and sustainability, such frameworks can reshape urban growth in a more balanced way.
However, execution remains a challenge. Many Indian cities are ready for the renewal of ageing residential pockets, but delays in approvals often stall projects. Faster clearances and clearer redevelopment guidelines could unlock value while improving liveability and quality of life for residents.
Sustainability, Garg argues, is no longer optional. Incentives for energy-efficient construction, green materials and water-conscious design would reinforce responsible urban development. Stable taxation and streamlined regulatory processes, he adds, are essential to strengthen buyer trust and enable long-term planning across the sector.
Affordability must go beyond interest rates
For Siddharth Vasudevan Moorthy, Managing Director of Vascon Engineers Ltd, the focus of Budget 2026 should be on genuine affordability rather than short-term signals around interest rates. For first-time homebuyers, he says, stable EMIs, clear tax benefits and easier access to credit matter far more than marginal changes in borrowing costs.
Moorthy calls for enhanced deductions on home loan interest and principal repayment, along with higher limits for self-occupied properties. Such measures, he argues, could revive demand without inflating prices or creating speculative excess.
On the supply side, the sector is grappling with rising construction costs. Moorthy points out that costs have increased significantly since 2017, making it critical to address tax-related pressures. He urges the government to provide relief from the 18% GST on corporate guarantees and to reduce GST on construction contracts from 18% to 12%, or preferably 5%.
Another long-standing demand is the granting of industry status to real estate beyond the affordable housing segment. Moorthy believes this would improve access to institutional finance and create more sustainable funding structures, allowing developers to plan projects with greater confidence and financial discipline.
Flexible workspaces reflect changing urban needs
The evolution of work culture is also shaping pre-Budget expectations. Mukul Pasricha, Founder and CEO of Spring House Workspaces, says the flexible workspace and commercial real estate sector is closely watching how Budget 2026 responds to hybrid work becoming the norm.
Over the past few years, businesses have increasingly moved towards agile, cost-efficient and community-led office formats. Pasricha sees the Budget as an opportunity to strengthen this shift by focusing on urban infrastructure, ease of doing business and MSME-led growth, all of which directly influence workspace demand.
From an industry standpoint, clearer taxation, smoother leasing frameworks and incentives that promote formalisation and shared infrastructure could unlock sustainable growth. Flexible workspaces, Pasricha notes, are no longer just real estate solutions. They are emerging as economic enablers, supporting jobs, activating city centres and contributing to India’s broader growth story.
A quiet but consequential Budget
Taken together, these expectations point to a sector seeking maturity rather than momentum. Real estate leaders are not asking the Budget to fix the market overnight. They are asking it to remove friction, lower uncertainty and support long-term quality in housing and commercial development.
A Budget that focuses on affordability, regulatory clarity, urban renewal and evolving work patterns may not generate dramatic headlines. But by quietly supporting confidence and execution, it could lay the groundwork for a more resilient and sustainable real estate cycle in the years ahead.
