The countdown to the Union Budget 2026 has officially started. Experts across various sectors are now voicing their expectations before Finance Minister Nirmala Sitharaman presents the budget in Parliament. She will deliver Budget 2026 on Sunday, February 1, in the Lok Sabha.
Real Estate Sector Pins Hopes on Tax Relief
Ahead of the budget announcement, the real estate industry has high hopes for government support. Leaders are calling for measures to improve housing affordability through tax cuts and policy adjustments.
Gautam Hari Singhania, Chairman and Managing Director of the Raymond Group, shared his perspective. He said the budget offers a timely chance to accelerate India's progress toward 'Viksit Bharat'. It can also reinforce the domestic consumption cycle. Singhania emphasized that steps supporting consumer sentiment and disposable incomes would boost demand in sectors like retail and real estate.
Industry Experts Push for Tax Deductions on Home Loans
The real estate sector is actively seeking tax relief for homebuyers to make housing more affordable. Industry leaders want home loan interest rate cuts through reduced taxes.
Rajan Yadav, director of Roots Developers, expressed his expectations. He stated that the union budget on February 1, 2025, should include measures to improve the real estate segment. The industry desires tax deductions on home loan interest, better subsidies for buyers, and disbursements to lower EMIs and risks. Yadav believes such steps can drive growth and urban development. They could also restore demand in luxury housing segments.
Ashish Agarwal, Director at AU Real Estate, echoed similar sentiments. He noted that the real estate sector hopes for growth-focused incentives in the luxury housing segment as well. Agarwal pointed out that increasing incomes, wider global exposure, and a desire for safe, amenity-rich communities are fueling demand for premium homes in the NCR. He added that buyer sentiment would improve with supportive tax policies, streamlined stamp duties, and infrastructure development in key areas.
What Tax Reliefs Do Experts Want?
To promote affordable housing, real estate leaders also hope the government will revive specific sections of the Income Tax Act.
Anuj Puri, chairman of ANAROCK, highlighted a powerful tool available to the government. He mentioned Section 80-IBA of the Income Tax Act, 1961, as a direct way to increase housing affordability. Puri explained that the most immediate tool is to bring back the 100% tax holiday for developers of affordable housing under Section 80-IBA. This incentive expired in 2021 but was very effective in encouraging developers to launch more affordable housing projects. He suggested a limited-period tax holiday for Section 80-IBA projects approved within a defined window, such as 24-36 months. Puri described this as a high-impact, fiscally defensible intervention.
Rajat Khandelwal, group CEO of Tribeca Developers, emphasized the need to enhance homebuyer incentives. He said that on the demand side, improving homebuyer incentives is crucial. Khandelwal proposed an upward revision in the Section 24(b) home loan interest deduction. He also recommended targeted benefits for first-time buyers to improve affordability and sustain housing demand.
Focus on Tier II Cities Over Metros
Abhay Mishra, president and CEO of Jindal Realty, argued that Budget 2026 should prioritize Tier II cities rather than just metros. He cited the housing momentum these areas have experienced in recent months.
Mishra stated that with better infrastructure and stable prices, these markets can grow faster. He called for the budget to boost urban infrastructure spending, provide tax support to homebuyers, and encourage affordable housing.
Mohit Gohel, MD of Omaxe, added to this point. He said a continued focus on urban infrastructure, transport connectivity, and housing-linked development is critical. This is especially true as Tier II and Tier III markets emerge as the next engines of growth. Gohel emphasized that policy continuity, faster approvals, and incentives for sustainable construction can significantly improve execution efficiency on the ground.
Balanced Budget Key to Reviving Growth
Industry leaders collectively believe that a balanced Budget 2026 is essential. It must address both affordable and rental housing concerns. Such a budget could play a decisive role in reviving broad-based growth in the real estate sector. The expectations are clear: tax relief, policy support, and a focus on emerging markets will drive the industry forward.
