With Budget 2026 only a few days away, the real estate sector is watching closely forAfter two years of steady demand across housing segments, industry leaders say the focus has now shifted from short-term incentives to clarity that can support sustainable growth, job creation and investor confidence.
Developers believe the upcoming Budget is unlikely to centre on subsidies. Instead, the expectation is for reforms that improve capital efficiency and reduce regulatory uncertainty.
Amit Modi, Director at County Group, says the sector has matured beyond the need for frequent stimulus. “The real estate sector is a major contributor to the country’s GDP and a strong pillar of the Indian economy. We expect Budget 2026 to focus less on subsidies and more on capital efficiency and policy certainty,” he says.
Demand in the premium and luxury housing segment continues to hold up well, especially in the Rs 2 crore-plus category. According to developers, this demand is driven largely by end-users and high-net-worth individuals who see homes as long-term assets rather than lifestyle purchases.
Modi adds that clarity in taxation is now critical. “Over the past two years, we have seen sustained demand in the luxury segment. What the sector now needs is rationalisation of capital gains timelines and indexation benefits. Luxury buyers may not be price-sensitive, but they are highly sensitive to regulatory ambiguity,” he explains.
Industry leaders believe that a stable and predictable tax framework would encourage developers to plan larger, design-led projects with longer gestation periods. This, in turn, could strengthen India’s position as a global residential investment destination.
BK Malagi, Vice Chairman of Experion Developers, says luxury housing now plays a broader economic role. “Luxury real estate sits at the intersection of lifestyle, wealth preservation and urban identity. Ultra-luxury projects generate employment across design, construction and interiors, while also attracting NRI and institutional interest,” he says.
Malagi believes Budget 2026 has the chance to position Indian luxury homes as a credible wealth-creation avenue.
“Rationalising capital gains structures and simplifying transaction frameworks can help make Indian luxury housing more transparent, investable and globally competitive,” he adds.
While luxury housing draws attention, developers say
Siddharth Maurya, Founder and Managing Director of Vibhavangal Anukulakara Pvt. Ltd., says Budget 2026 is being viewed as a test of intent. “Investors and homebuyers are looking at this Budget as a signal of how seriously India wants to push housing for all and urbanisation,” he says.
Maurya points to practical changes that could make a real difference. “Redefining affordable housing, expanding the 1% GST benefit to a more realistic price range in large cities, and reducing GST on developers’ input services can help cut costs and improve construction quality,” he says.
He also highlights the importance of infrastructure. “Higher PMAY allocations and continued investment in metro, regional rail and logistics can make real estate a stronger engine for jobs, consumption and long-term wealth creation,” Maurya adds.
Simply put, as Budget 2026 approaches, the real estate sector’s message is clear: stability matters more than short-term relief. Developers want predictable tax rules, cleaner transaction frameworks and sustained infrastructure investment to support long-term growth. How far the Budget delivers on these expectations will shape sentiment across housing markets in the year ahead.