Shivam, VP, Lalit Parihar and Ankur Jalan
With the Union Budget 2026 just days away, India’s real estate sector is laying out a clear wishlist -- one that underscores the need for continuity in reforms, sharper demand-side support, and accelerated infrastructure development. From residential housing to office assets and emerging industrial corridors, industry leaders expect Finance Minister Nirmala Sitharaman to sustain the momentum built over the past few years while addressing evolving structural challenges.
Residential Real Estate: Sustaining Affordability and Demand
The housing market has enjoyed a multi-year upswing driven by regulatory clarity, stable demand and improved urban infrastructure. But industry players believe the next leg of growth will require deeper policy continuity.
Shivam, VP – Strategic Growth at Sattva Group, noted that the Government’s sustained focus on urban infrastructure and housing reforms has “helped build confidence around modern, organized urban living.” He added that “continued policy support through faster and more transparent approvals, rationalization of taxes and incentives, and infrastructure-led urban development will be important to sustain momentum.”
The sector is also looking for measures such as GST rationalisation, tax benefits for homebuyers, and smoother institutional financing—especially for mid-income and affordable categories where the demand gap remains most visible.
Commercial Real Estate: More Ease-of-Doing-Business, Faster Scale
India’s position as a global hub for Global Capability Centres (GCCs) is strengthening, supported by improved infrastructure and operational ease. Yet, developers believe more can be done to support the next wave of expansion.
Shivam emphasised that “well-planned office and mixed-use clusters, single-window clearances, infrastructure status for large developments and better coordination between central and state policies” would reinforce investor confidence and help India compete more effectively for global corporate footprint.
Institutional Capital & AIF Incentives: Key for Long-Term Market Depth
Alternative Investment Funds (AIFs) have become an increasingly important channel for structured real estate capital. Ankur Jalan, CEO of Golden Growth Fund (GGF), expects the Budget to make this ecosystem more attractive.
“As we look ahead to Union Budget 2026, our expectations reflect both the challenges and opportunities in India’s real estate sector,” he said. Jalan highlighted the need for enhanced incentives for AIFs to encourage greater institutional capital flows, arguing that this will help make investments more streamlined, regulated and transparent.
He also stressed the importance of demand-side support, calling for an extension of homebuyer tax incentives, and continuing the strong push for urban transport, utilities and last-mile connectivity.
The Budget is also expected to influence growth trajectories of emerging industrial and smart city hubs. Lalit Parihar, Managing Director of Aaiji Group, believes that sustained capital investment will be crucial for regions like Dholera.
“We expect the Union Budget 2026 to further strengthen infrastructure-led urban development,” he said, citing the need for continued investment across roads, logistics, airports, industrial corridors, bullet trains and smart city infrastructure.
Parihar also called for renewed focus on SEZs, including greater flexibility and fiscal incentives, alongside GST rationalisation and incentives for green construction to boost project viability.
While premium housing has led value growth in recent years, cracks are emerging in volume momentum—especially in the mid-income segment.
Vijay Harsh Jha, Founder and CEO of VS Realtors, warned that the market is showing early signs of a slowdown. “India’s real estate sector is beginning to show signs of slowdown in volume sales highlighting a structural supply gap—particularly in homes priced below ₹1 crore, where demand remains strong,” he noted.
He stressed the need for timely government intervention, including tax breaks, access to affordable land for developers, and continuing home loan incentives to support the segment that drove the sector’s post-pandemic revival.
Jha added that while premiumisation has dominated recent growth, it “may prove unsustainable” amid job market pressures, moderating incomes and geopolitical uncertainties.