🏘️ Real Estate Sector Looks to Budget 2026 for Growth Boost
As India’s Union Budget 2026‑27 approaches (to be presented on February 1, 2026), the real estate industry is actively outlining its expectations — from tax reforms to policy clarity that can make housing more affordable and fuel growth. Experts say affordability remains the biggest challenge slowing down buyer confidence, especially for middle‑income and first‑time homebuyers.💰 Home Loan Tax Relief: A Top DemandOne of the strongest calls from both homebuyers and industry bodies is for enhanced tax relief on home loans:🔹 Higher Deduction Limits
✅ Bring fresh demand to the market by lowering effective EMIs and increasing buyer incentives
✅ Revive stalled housing projects with expanded funds and credit support
✅ Promote balanced urban growth beyond major metrosThe real estate sector is hopeful that the budget will strike a balance between fiscal prudence and targeted incentives, helping restore buyer conviction and enabling inclusive housing growth across India. Disclaimer:The views and opinions expressed in this article are those of the author and do not necessarily reflect the official policy or position of any agency, organization, employer, or company. All information provided is for general informational purposes only. While every effort has been made to ensure accuracy, we make no representations or warranties of any kind, express or implied, about the completeness, reliability, or suitability of the information contained herein. Readers are advised to verify facts and seek professional advice where necessary. Any reliance placed on such information is strictly at the reader’s own risk.
- Currently, the income tax benefit on home loan interest is capped at ₹2 lakh a year. The real estate sector wants this limit raised — some proposals suggest up to ₹4 lakh or even ₹5 lakh to significantly lower the annual tax burden on buyers.
- Alongside interest deductions, stakeholders want a greater principal repayment deduction under Sections 80C/80EEA to further support affordability.
- There’s also an argument to allow home loan deductions under the new tax regime, not just the old one, making tax benefits more accessible for salaried individuals.
- Rising costs of steel, cement and other materials have squeezed margins and made projects more expensive.
- Developers want GST rationalisation — for example, reducing GST on construction inputs or offering input tax credits — to directly lower project costs and result in more affordable homes.
- The Special Window for Affordable and Mid‑Income Housing (SWAMIH) Fund, created to provide last‑mile financing to stalled projects, has helped unlock stalled homes across India. industry groups want the fund expanded to sustain and accelerate this support.
- Better access to institutional finance, potentially through refinance mechanisms or housing credit facilities, could lower lenders’ cost of funds and, in turn, reduce interest rates on home loans.
- Industry leaders want the definition of affordable housing updated to reflect modern markets — current price and data-size caps are viewed as outdated.
- Calls are also being made to harmonise stamp duty and registration fees across states to avoid regional price distortions.
- Developers believe budgetary emphasis on connectivity and infrastructure — including transport links and utilities — will boost housing demand, especially in Tier‑II and Tier‑III cities.
- With real estate investment growing beyond the metros, supportive budget measures could unlock demand in emerging urban hubs.
✅ Bring fresh demand to the market by lowering effective EMIs and increasing buyer incentives
✅ Revive stalled housing projects with expanded funds and credit support
✅ Promote balanced urban growth beyond major metrosThe real estate sector is hopeful that the budget will strike a balance between fiscal prudence and targeted incentives, helping restore buyer conviction and enabling inclusive housing growth across India. Disclaimer:The views and opinions expressed in this article are those of the author and do not necessarily reflect the official policy or position of any agency, organization, employer, or company. All information provided is for general informational purposes only. While every effort has been made to ensure accuracy, we make no representations or warranties of any kind, express or implied, about the completeness, reliability, or suitability of the information contained herein. Readers are advised to verify facts and seek professional advice where necessary. Any reliance placed on such information is strictly at the reader’s own risk.