Tarun Bhatia Vice Chairman & Chair-Global, NAR India
As India prepares for Budget 2026, the real estate sector once again finds itself at a crucial intersection of housing demand, urban infrastructure, and economic growth. Over the past few years, policy continuity, regulatory reforms, and steady consumer confidence have helped the sector regain momentum after a prolonged period of disruption. The upcoming budget is therefore expected to focus less on headline announcements and more on deepening structural support for housing and urban development.
One of the key expectations from Budget 2026 is continued emphasis on affordable housing. Government-led initiatives have played a significant role in expanding home ownership, particularly in Tier II and Tier III cities. Industry stakeholders anticipate an extension or enhancement of incentives for affordable housing projects, including tax benefits for developers and homebuyers, to ensure sustained supply and demand in this segment. Affordable housing not only addresses a social need but also acts as a strong employment generator, supporting allied industries such as cement, steel, and construction services.
Another major area of expectation is rationalisation of taxation for homebuyers. While housing remains one of the largest financial commitments for Indian households, tax deductions on home loan interest and principal repayments have not kept pace with rising property prices and borrowing costs. A revision in these limits could provide meaningful relief to end-users, improve affordability, and stimulate genuine demand rather than speculative activity.
A long-standing expectation of the sector, which gains renewed relevance in the context of Budget 2026, is the grant of industry status to real estate. Recognising real estate as an industry would enable easier access to institutional financing, improve credit availability at more competitive rates, and bring greater transparency and accountability. Industry status would also help align real estate with other core sectors of the economy, supporting long-term capital formation and more sustainable growth.
From the perspective of realtors and brokerage professionals, there is also an expectation for reforms that improve ease of doing business and professional mobility. As the sector becomes increasingly organised and pan-India in nature, the concept of a "One Nation, One RERA licence" for registered real estate agents merits consideration. A unified or harmonised licensing framework could allow compliant realtors to operate across states without repetitive registrations, while still adhering to local regulations. Such a move could enhance transparency, improve compliance, and support a more professional, accountable brokerage ecosystem nationwide.
The real estate sector is also looking towards Budget 2026 for greater clarity and support for rental housing. With urban migration increasing and lifestyles evolving, rental housing is becoming a critical component of India's urban fabric. Policies that encourage formal rental housing, student housing, and co-living models - through tax incentives or institutional participation, could help bridge the gap between demand and availability while improving tenant protections and transparency.
Infrastructure development remains a strong enabler for real estate growth, and Budget 2026 is expected to further strengthen this linkage. Continued investments in metro rail networks, highways, airports, regional connectivity, and urban infrastructure directly influence real estate absorption and pricing. Faster execution of infrastructure projects, along with better coordination between central and state agencies, can unlock new micro-markets and reduce pressure on already congested urban cores.
From a regulatory standpoint, the industry expects the government to maintain a stable and predictable policy environment. Simplification of approval processes, faster project clearances, and digitisation of land records can significantly reduce execution risks and improve ease of doing business for developers and investors alike.
Overall, the real estate sector is not seeking headline-grabbing announcements, but policy consistency, targeted relief, and execution-focused reforms. If Budget 2026 delivers sustained support for housing, rational tax relief, long-pending measures such as industry status, streamlined regulatory frameworks including a unified RERA licensing system for realtors, and continued infrastructure investment, it can further consolidate real estate's role as a transparent, resilient, and stable pillar of India's long-term urban and economic development.
Article By: Tarun Bhatia Vice Chairman & Chair-Global, NAR India
