With Budget 2026 around the corner, real estate developers across India are looking to the government for policy support that can sustain momentum in the sector while addressing rising costs and operational challenges. Although demand for premium and luxury homes remains strong, higher land prices, construction expenses and regulatory compliance are squeezing margins and impacting affordability.
Industry leaders believe the upcoming budget offers an opportunity to create a more balanced, inclusive and future-ready housing ecosystem.
One of the key demands is formal recognition of senior living and retirement housing as a distinct real estate category. Developers point out that India’s ageing population requires purpose-built housing that focuses on comfort, safety and dignity.
They are seeking incentives for developers, GST rationalisation and clearer policy guidelines to help scale this segment and bring it into the mainstream housing market.
Premium housing continues to gain traction, especially in Tier-2 cities where lifestyle aspirations are evolving rapidly. Buyers in these cities are increasingly looking for larger homes, gated communities and modern amenities comparable to metro standards.
Developers say higher public investment in urban infrastructure—such as roads, transit systems and civic services—along with incentive-linked funding could strengthen these emerging markets, generate employment and attract skilled professionals.
Affordability remains a major concern for end-users. Industry players are urging the government to increase home loan interest deduction limits, which have not kept pace with rising property prices.
There is also a demand to revise the affordable housing price cap from Rs 45 lakh to around Rs 75–80 lakh to reflect current market realities, along with the possible reintroduction of interest subvention schemes to reduce EMIs for buyers.
On the supply side, developers want a more rational GST structure for residential real estate, clearer tax rules and easier access to institutional funding. Many are also pushing for housing to be formally recognised as an infrastructure sector, which could unlock cheaper capital and improve project viability.
Simplifying approval processes and reducing bureaucratic delays are seen as crucial steps to improve efficiency and encourage timely project completion.
In the luxury and ultra-luxury segment, developers are expecting relief in capital gains taxation. A key ask is revisiting the Rs 10 crore cap on capital gains reinvestment under Sections 54 and 54F, which they say restricts high-value property transactions.
Additional expectations include green financing incentives, ESG-linked benefits and rationalisation of TDS norms for NRI property sellers to attract more foreign investment into India’s real estate market.
