THEBUSINESSBYTES
BUREAU
MUMBAI,
JANUARY 12, 2026
As the Union
Budget 2026 approaches, expectations are rising within the real estate industry
for policy measures that can recalibrate growth towards affordability,
sustainability and long-term resilience. With market dynamics evolving and
global uncertainties persisting, industry leaders believe the upcoming Budget
will play a critical role in shaping the next phase of India’s housing and real
estate growth story.
Highlighting a
clear shift in market momentum, Tanuj Shori, Founder and CEO of Square Yards,
observed that the Indian housing market is transitioning away from a luxury-led
upcycle to a more value-driven phase. “The Indian housing market is clearly
moving out of a luxury-led upcycle and into a more value-driven phase, with the
mid-income segment poised to anchor growth as premium demand begins to
stabilise,” he said. From Budget 2026, he expects a sharper focus on improving
affordability through enhanced tax relief for mid-income homebuyers, higher
interest deduction limits and continued investment in urban infrastructure.
Shori also
underscored the importance of aligning supply with evolving demand patterns. He
noted that policy support encouraging development in the affordable and
mid-market segments is crucial, especially as recent project launches have been
heavily skewed towards higher ticket sizes. According to him, a budget that
reflects these realities can strengthen end-user demand, improve
price-to-income dynamics and foster a more balanced and sustainable phase of
urban housing growth.
Echoing
similar sentiments, Badal Yagnik, CEO and Managing Director at Colliers India,
said the industry is looking at Budget 2026 as a catalyst for equitable and
broad-based real estate development. “Budget 2026 is expected to prioritize
growth across economic sectors and usher in equitable real estate development
through policy incentives and tax rebates,” he said, adding that the Budget is
likely to balance fiscal discipline with growth, while keeping India globally
competitive in sectors such as real estate.
Yagnik
emphasized the need to revisit and standardize affordable housing criteria,
particularly to reflect the pricing realities of Tier I cities, which could
provide a significant demand-side boost to residential real estate. He also
pointed to the importance of supply-side measures, including infrastructure
augmentation and capacity building, to unlock long-term growth across asset
classes.
Beyond
housing, the industry is also keen on measures that deepen capital markets and
broaden participation. Yagnik noted that real estate democratization and retail
investor participation could be strengthened by making REITs and SM-REITs more
attractive. At the same time, he stressed that the upcoming Budget should
incentivize sustainability adoption in built structures and holistically
revitalize urban development plans.
With Indian
real estate standing at the cusp of accelerated growth across segments,
industry leaders agree that Budget 2026 must lay the foundation for sustained,
long-term expansion, while cushioning the sector against global volatility and
trade frictions.
