Real Estate Sector Awaits Key Reforms in Union Budget 2026
The real estate sector is closely watching the Union Budget 2026, as Finance Minister Nirmala Sitharaman prepares to present it on February 1. After strong growth driven by infrastructure projects and demand for premium homes, the sector is now expecting reforms to improve affordability, speed up approvals, and reduce financial pressure on both buyers and developers.
Housing affordability remains a major concern, especially for middle-class families. Homebuyers are hoping the government will increase the tax exemption on home loan interest from ₹2 lakh to ₹5 lakh. This move could provide relief and encourage more people to invest in property.
Developers, meanwhile, are seeking ‘Industry Status’ for real estate, which would help them access loans at lower interest rates and reduce regulatory hurdles. Builders are also requesting an increase in the affordable housing price limit to ₹75 lakh or ₹80 lakh, as rising land and construction costs have made it difficult to offer homes within the current limits.
Another key demand is the introduction of a single-window clearance system to speed up project approvals. Faster approvals would reduce delays, lower project costs, and improve buyer confidence. The sector is also expecting better land record digitization and stricter implementation of RERA rules to ensure transparency.
In the commercial segment, the retail sector is seeking easier credit access, while co-working operators are requesting GST relief to support startups and flexible workspaces. Continued investment in infrastructure such as metro rail, highways, and green buildings is also expected to drive future growth.
With real estate linked to more than 250 industries, experts believe Budget 2026 could play a major role in boosting investor confidence and shaping the future of India’s property market.
