As Union Budget 2026 approaches, leaders across real estate, infrastructure, energy, and manufacturing sectors are presenting a unified call for policy continuity while addressing sector-specific structural challenges. With infrastructure spending continuing to anchor India's growth story, stakeholders emphasize the need for sustained momentum rather than dramatic policy shifts.

Commercial Real Estate Emphasizes Stability Over Incentives

Commercial real estate leaders indicate that Budget 2026 does not require dramatic announcements, with policy stability and predictability taking precedence over new incentives. Utkarsh Kawatra, CEO and Co-Founder of myHQ by ANAROCK, highlights that companies are expanding cautiously and testing new markets before committing to large leases, making consistent policy framework more valuable than short-term benefits.

Infrastructure investment is reshaping office demand across transit corridors and Tier-2 cities, driving increased demand for flexible and managed offices. Despite strong growth momentum, the flex office sector still lacks formal regulatory recognition. Aashit Verma, Founder of Hanto Workspace, calls for a clearer GST framework, input credit clarity on leasehold capex, seamless digital registration of agreements, and formal recognition of flex operators as a distinct asset class.

Housing Sector Demands Affordability and Financing Reforms

The housing sector continues to face affordability pressures, with industry leaders calling for comprehensive reforms to address market realities. Shishir Baijal, Chairman and Managing Director of Knight Frank India, emphasizes that affordable housing remains under pressure due to elevated costs and outdated incentive thresholds, requiring realignment of housing incentives with current market conditions.

Developers including Pradeep Aggarwal of Signature Global, Ashok Kapur of Krisumi Corporation, Vikas Bhasin of Saya Group, and Ankur Jalan of Golden Growth Fund have reiterated demands for industry status for real estate, extension of the Credit Linked Subsidy Scheme, rationalization of GST and stamp duty, and higher home loan interest deductions to support end-user demand. The focus includes creating a formal rental housing ecosystem to unlock underutilized stock and attract institutional capital.

Infrastructure and Manufacturing Seek Sustained Capital Expenditure

Infrastructure players expect the government to maintain momentum on capital expenditure, with public spending continuing to serve as a growth anchor. Rajan Luthra, CFO of ACE-Action Construction Equipment, notes that public capex continues to drive growth, while GST rationalization, improved liquidity, and digital adoption can encourage private investment participation.

Mohit Jandu of J Infratech highlights the importance of continued focus on roads and highways, along with digital transformation across planning, construction, and tolling systems. Sanjay Choudhari, Chairman of SBL Energy, calls for duty rationalization on critical materials, incentives for green technologies, and streamlined approvals through single-window mechanisms to unlock private investment in infrastructure and mining sectors.

Energy and Sustainability Push for Structural Reforms

Renewable energy leaders emphasize policy continuity while seeking enhanced support for clean energy transition. Akshat Jain, CEO of KLK Ventures, identifies enhanced incentives for solar infrastructure, domestic manufacturing, energy storage, and smart grids as critical components for India's clean energy goals. The sector requires sustained policy support to maintain growth momentum and achieve long-term sustainability targets.

Raj Kumar Medimi of Trinity Cleantech stresses the need for transmission and distribution upgrades, quality benchmarks, and faster payments to MSMEs to support sector development. On sustainability priorities, Amit Banka, Founder of WeNaturalists, urges the government to treat water as a national priority, proposing large-scale investments in water capture and redistribution infrastructure to address scarcity-driven migration, urban stress, and livelihood disruption.

The collective expectations from industry leaders suggest that Union Budget 2026 should focus on maintaining policy consistency while addressing sector-specific challenges through targeted reforms, sustained capital expenditure, and structural improvements to support India's continued economic growth across multiple sectors.

India's real estate sector stands at a critical juncture, with industry leaders calling for comprehensive policy reforms in Budget 2026 to address a deepening housing divide. The sector, which contributes nearly 7% to India's GDP and employs over 70 million people, requires urgent fiscal intervention to maintain its role as a pillar of economic growth and urban transformation.

Growing Market Imbalance Threatens Housing Accessibility

Anuj Puri, Chairman of ANAROCK Group, warns of emerging structural imbalances creating a two-tier housing market. While luxury housing sales and prices capture media attention, homeownership is becoming increasingly unaffordable for large segments of the Indian population. Without decisive intervention in Budget 2026, Puri cautions that the gap between premium housing and basic affordable homes could widen further, potentially excluding millions from the ownership cycle.

Affordable Housing Requires Immediate Fiscal Support

The revival of affordable housing emerges as a central priority among industry recommendations. Puri emphasizes that reintroducing the 100% tax holiday for developers under Section 80-IBA could provide the most immediate and effective boost to supply. This incentive, which was withdrawn in 2021, had previously encouraged broader developer participation and accelerated affordable project launches.

Industry experts argue that without restoring such incentives and recalibrating affordability thresholds, both demand and supply in this critical segment will remain subdued.

Infrastructure Acceleration Critical for Housing Expansion

Infrastructure development represents another key area requiring immediate attention. While Puri acknowledges positive initiatives such as the National Infrastructure Pipeline and PM Gati Shakti, he highlights implementation speed as a persistent concern. Priority funding is needed for metro rail expansions, suburban rail networks, ring roads connecting peripheral regions, and integrated logistics corridors—all vital for unlocking new housing corridors and reducing pressure on urban cores.

Consumer-Focused Reforms to Boost Housing Demand

Anurag Mathur, CEO of Savills India, advocates for demand-side reforms that directly improve household affordability. His recommendations include:

• Raising the standard deduction for individual taxpayers
• Linking deductions to a percentage of income
• Implementing measures to increase disposable incomes

Mathur argues that higher disposable incomes can meaningfully support housing demand among middle-income and first-time buyers, particularly in urban centers.

Rental Housing and REITs as Affordability Solutions

Rental housing is increasingly viewed as a structural solution rather than a temporary measure. Mathur emphasizes the need for policy support to expand professionally managed rental housing, including enabling multi-family REITs. Such measures could improve affordability, enhance workforce mobility, and attract institutional capital into an underdeveloped segment despite rising urbanization.

Additionally, Mathur points to the importance of pragmatic land reforms and monetization of underutilized government land to address supply-side constraints, potentially lowering development costs and accelerating housing delivery.

Market Challenges Persist Despite Overall Resilience

Shishir Baijal, Chairman and Managing Director of Knight Frank India, notes that despite overall market resilience, affordable housing continues to underperform. He attributes this to declining affordability, rising input costs, and limited end-user support, warning that without timely policy recalibration, demand in this segment could remain structurally weak.

Baijal stresses the need to realign housing incentives with current urban cost structures, particularly in large cities where existing price thresholds no longer reflect market realities.

Infrastructure Investment for Inclusive Growth

Both Baijal and Mathur emphasize that sustained investment in mass transit and urban infrastructure is crucial for long-term inclusion. Improved connectivity to peripheral growth corridors can expand affordable land supply, while continued development of Global Capability Centers and office hubs in Tier II and III cities can drive decentralized job creation and promote more balanced urban growth beyond metropolitan areas.

Industry leaders agree that Budget 2026 represents a defining moment for India's housing sector. From restoring affordable housing incentives and accelerating infrastructure execution to strengthening rental housing and consumer affordability, experts emphasize that bold, coordinated policy action is essential to prevent a deeper housing divide and ensure India's urban growth remains inclusive and sustainable.