As India approaches the Union Budget 2026, stakeholders from the real estate sector are expressing strong expectations around policy continuity, infrastructure development, and targeted incentives to support evolving housing needs across the country. From premium housing in Tier 2 cities to senior living and the sustained growth of the NCR market, industry leaders highlight the critical role of government support in strengthening buyer confidence and enabling long-term urban development.
Premium Housing and Tier 2 Cities: The Next Growth Engine
In 2026 budget, we hope to see continued policy support for the premium housing segment across India. This becomes especially important for Tier 2 cities, where a lifestyle transformation is underway. Active home buyers are demanding larger living spaces, upscale amenities, and gated community environments that match metro standards. If the government provides incentive-linked funding and greater investment in urban infrastructure, it will further strengthen these emerging markets and enhance buyer confidence.
In Tier 2 cities, luxury housing is not only about premium living; it also helps create jobs, attract talent, and build future-ready urban ecosystems.
— Parvinder Singh, CEO, Trident Realty
Senior Living: A Growing and Essential Real Estate Segment
We believe the 2026 Union Budget will provide a perfect opportunity to acknowledge senior living and retirement homes as a crucial part of India’s real estate. With the elderly population of the country poised to grow 300 percent by 2030, there is an increasing need for well-designed, secure, and supportive communities for seniors. Incentives for developers, GST rationalisation, and clear policy guidelines can help formalise and expand this category.
We also hope to see benefits for senior home buyers to ease investment decisions. Senior living is not only about housing, but it’s also about dignity, autonomy, and quality of life in later years.
— Anil Godara, Founder and Managing Director, J Estates
NCR Real Estate: Infrastructure, Connectivity and Buyer Confidence
The NCR area remains the backbone of North India’s real estate sector, majorly contributing to residential and commercial development. From the 2026 budget, we are expecting policy interventions to fix infrastructure bottlenecks, streamline approval processes, and expedite environmental clearances. Measures such as stamp duty reductions, easier access to home loans, and incentives for first-time buyers can reassure end-users and increase demand.
Focus on infrastructure, connectivity and livability, and further allocations will further aid buyer confidence and support long-term growth. We anticipate the government will recognise NCR’s potential and provide support for sustainable growth.
— Aman Sharma, Founder and Managing Director, Aarize Group
Sustaining Momentum in NCR’s Luxury Housing Market
We look forward to a continued policy stability and growth-focused incentives for the NCR luxury housing market in pre-budget expectations for 2026. Increasing incomes, wider global exposure, and a desire for safe, amenity-rich communities are the demand-driving factors for premium homes in the NCR. Buyer sentiment will be further enhanced by supportive tax policies, streamlined stamp duties, and infrastructure development across important areas.
Additionally, quicker environmental and development clearances will enable developers to deliver projects more efficiently. The NCR remains one of the most influential real estate markets in the country, and a progressive budget can play a significant role in sustaining this momentum.
— Ashish Agarwal, Director, AU Real Estate
Affordability, Policy Stability and Urban Growth
India’s real estate sector has the potential to contribute over 15% to the country’s GDP over the medium term, provided the Union Budget 2026 addresses key structural bottlenecks.
Stable and predictable policy support will be critical to sustaining demand and improving affordability across housing segments. Targeted fiscal interventions such as enhanced tax benefits on housing loans, rationalisation of long-term capital gains on real estate investments, and a more contemporary definition of affordable housing can meaningfully reduce buyer stress and unlock end-user demand.
Equally important is continued policy support that enables credible developers to cater to demand in the luxury and premium housing segments, particularly across major urban centres and fast-emerging markets. While affordability must remain a priority, the premium segment plays a vital role in anchoring investor confidence, enabling large-scale urban development, and supporting employment across the construction and allied value chain.
With urban homebuyers facing rising property prices and higher borrowing costs, affordability is likely to be a key focus area in this year’s Budget. In several metros, housing EMIs account for a significant share of household income, underscoring the need for policy recalibration. The current ₹45 lakh cap for affordable housing no longer reflects present-day urban realities.
As residential growth increasingly extends to Tier-II and emerging cities, a calibrated revision of this threshold along with faster approvals and improved access to formal finance, could ease repayment pressures, stimulate housing-led consumption across sectors, and support more sustainable and inclusive urban growth.
— Rakesh Reddy, Director, Aparna Constructions
Tax Clarity, Infrastructure Push and Housing-Led Growth
As we approach Budget 2026, there is an opportunity to further strengthen the residential real estate sector through measures that enhance clarity, confidence, and long-term stability. Clear and consistent tax and GST policies, particularly for under construction housing, will help reduce ambiguity, improve cost visibility and support both developers and homebuyers in making informed decisions. Greater predictability in taxation is essential to sustaining momentum across residential markets.
From a demand perspective, continued support for homebuyers through rationalised tax benefits and aligned affordability norms can make homeownership more achievable for a wider cross section of buyers. At the same time, focused investments in urban infrastructure such as transport connectivity, road networks and social infrastructure will play a critical role in unlocking the potential of residential growth corridors and enabling planned urban expansion.
We are expecting a budget that brings together infrastructure led growth with tax clarity and housing focused reforms that can create a strong foundation for the residential real estate sector, allowing it to contribute meaningfully to economic growth while addressing the evolving needs of Indian homebuyers.
— Mr. Venkatesh Gopalakrishnan, Director, Group Promoter’s Office, MD, Shapoorji Pallonji Real Estate (SPRE)
