As India approaches the Union Budget 2026, real estate stakeholders are prioritising policy consistency and infrastructure support over headline-grabbing incentives. After a year of gradual recovery, developers and market analysts note that homebuyer confidence has strengthened, site visits have risen, and luxury and mid-income segments are showing steady demand. The sector now seeks a budget that sustains momentum while supporting responsible urban expansion.
Industry experts highlight that luxury housing in metro and peripheral markets is more focused on structural stability than aggressive sales volumes. Continuity in access to organised credit, rationalisation of stamp duties, and predictable taxation are viewed as key levers for sustaining investor confidence. Policy clarity on capital gains reinvestment and easing procedural bottlenecks for NRIs could further streamline high-value transactions. Infrastructure-led growth is emerging as a dominant factor in shaping housing demand, particularly in Tier-II cities. Locations such as Sonipat, positioned along industrial corridors and expressway networks, are experiencing steady residential uptake supported by connectivity and urban planning. Urban planners stress that prioritising road, rail, and last-mile transport investments can convert latent demand into tangible housing growth, yielding long-term benefits beyond short-term fiscal incentives. Affordable and mid-income housing continues to require attention, with current price caps often misaligned with contemporary land and construction costs. Developers argue that recalibrating affordability thresholds in the budget could ease project viability constraints, enabling supply to better meet sustained demand in growing urban clusters. Such measures would also support inclusive urbanisation by expanding access to well-planned residential stock.
Market participants indicate that the current recovery phase is marked by measured buyer behaviour. End-user demand is driving transactions rather than speculative activity, and launches are being staged cautiously. Analysts suggest that the budget’s role should focus on signalling policy stability, reinforcing urban infrastructure, and enabling low-cost financing channels, rather than introducing sudden regulatory or fiscal shifts that could destabilise nascent confidence. In both premium and emerging peripheral markets, the interplay of consistent policy, infrastructure investment, and access to financing is shaping a more resilient urban real estate ecosystem. A forward-looking budget could help align real estate growth with sustainable urbanisation goals, supporting climate-conscious design, ESG-aligned developments, and technology-enabled housing solutions.
As India’s cities evolve, the upcoming budget will be closely watched as a barometer of long-term market health. Maintaining stability, encouraging responsible investment, and ensuring infrastructure keeps pace with demand could deepen the sector’s recovery and foster equitable, sustainable urban expansion across metros and high-growth Tier-II locations.
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