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Director of Knight Frank India, emphasizes that affordable housing remains under pressure due to elevated costs and outdated incentive thresholds, requiring realignment of housing incentives with current market conditions.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.

As Union Budget 2026 approaches, India's real estate and housing ecosystem is seeking comprehensive policy reforms to address affordability challenges, tax complexities, and infrastructure development needs. Industry leaders across residential, commercial, and emerging asset classes are calling for future-oriented measures that can sustain growth momentum while addressing sector-specific challenges.

Key Policy Expectations and Tax Reforms

The sector's primary focus remains on GST rationalisation and enhanced tax benefits for homebuyers. Sheeshram Yadav, Managing Director of Yugen Infra, emphasised the industry's expectation for tax breaks, improvements in the credit-linked subsidy framework, and a simplified GST structure. The sector is particularly seeking lower GST rates on luxury housing to boost buyer sentiment and attract long-term investment.

Harsh Gupta, Founder of Sipyatrra, highlighted investor expectations for capital gains tax rationalisation, especially on long-term equity and digital investment products. The sector is also seeking clearer regulations around alternative investment assets to strengthen trust and deepen India's investment culture.

Infrastructure Development and Regional Growth

Tier II and Tier III cities have emerged as significant growth drivers, with industry leaders emphasising their potential to compete with metropolitan markets. Yashank Wason, Managing Director of Royal Green Realty, noted that these markets are offering infrastructure-led projects, better amenities, and comparatively affordable pricing.

Rajat Bokolia, CEO of Newstone, specifically mentioned emerging destinations like Sonipat, which are benefiting from improved connectivity through metro extensions, RRTS, and expressway projects. The sector expects continued policy support for raising affordable housing limits and rationalising stamp duties in these markets.

Commercial Real Estate and Investment Framework

The commercial segment is seeking measures to strengthen both demand and investment frameworks. Ashish Bhutani, CEO of Bhutani Infra, called for rationalised taxation, expanded metro and expressway connectivity, and incentives for green and wellness-driven developments to enhance investor confidence.

Henam Khaneja, Additional Vice President at Elante Group, emphasised that higher tax deductions on home loan interest would provide meaningful relief to homebuyers amid elevated interest rates, strengthening both residential and commercial demand.

Sustainability and Future-Ready Development

The sector is increasingly focusing on sustainability and green building initiatives. Dhaval Ajmera, Director of Corporate Affairs at Ajmera Group, called for waiving caps on home loan tax benefits and introducing interest subvention schemes for green-rated real estate debt to reduce borrowing costs significantly.

Raahil Reddy, Director of Residential Projects at Fortune Primero, emphasised the need for progressive policies focused on sustainability, green buildings, and new-age construction technologies rather than short-term incentives. The industry is seeking policy frameworks that support India's Net Zero goals while maintaining commercial viability.

Market Momentum and Growth Outlook

Despite challenges, the sector reports strong fundamentals and sustained demand. Abhishek Raj, Founder and CEO of Jenika Ventures, noted that residential sales have posted strong double-digit growth across major cities. The industry expects measures like increasing home loan interest deduction limits and offering incentives for first-time homebuyers to broaden market participation.

Pradeep Aggarwal, Founder and Chairman of Signature Global (India) Ltd, highlighted that India's housing sector has maintained strong momentum, supported by easing borrowing costs and steady demand across mid-income and premium segments. The sector anticipates that continued policy support focusing on quality, sustainability, and timely execution will position real estate as a key driver of employment and urban growth.