With the Union Budget just days away, real estate players are closely watching what the government does ontaxation and housing policy. After two years of strong demand across residential markets, the sector now wantspredictability and stabilityrather than temporary incentives.

From subsidies to stability

Developers say the industry has matured and no longer depends on frequent stimulus. Instead, they wantcapital efficiency and policy certainty. According toAmit Modi of County Group, clear and stable tax rules are now more important than subsidies for long-term planning and investment.

Luxury housing needs tax clarity

Demand in the₹2 crore-plus luxury segmentremains strong, driven by end-users and wealthy buyers who see property as a long-term asset. But developers warn thatunclear capital gains rules and lack of indexation benefitscreate hesitation among high-value investors.

Industry leaders sayrationalising capital gains timelinesand simplifying taxation would encourage:

• Long-term investments

• Larger, design-led projects

• More interest from NRIs and institutional investors

This could help makeIndian luxury housing globally competitive.

Affordable housing still critical

While luxury homes get attention, developers stress thataffordable housing and urbanisationremain central to India’s growth story. Industry leaders want:

• Awider definition of affordable housing

• Expansion of the1% GST benefitto match rising property prices in big cities

• LowerGST on developers’ input servicesto reduce construction costs

Infrastructure is the real driver

Real estate growth also depends onmetros, regional rail, highways and logistics hubs. Higher spending onPMAY (housing schemes)and urban infrastructure can boost jobs, demand and long-term wealth creation.