Pre- Budget 2026 expectations: What will shape housing, investment & cities in 2026? 

The countdown to Union Budget 2026 has begun and the stakes for the Indian real estate and infrastructure sectors have rarely been higher. As the Finance Minister prepares to present the vision for the next fiscal year, industry heavyweights are calling for a decisive shift from short-term relief to structural reform.  

What’s on the real estate industry’s wishlist ahead of the big reveal? We spoke to some head honchos and got the inside line. 

Adhil Shetty, CEO, BankBazaar 

“As India prepares for Budget 2026, the focus is on easing pressure on household incomes while improving access to formal credit. A key lever is strengthening digital public infrastructure. An allocation of around ₹1 lakh crore under Digital India 2.0—covering DigiLocker, the Account Aggregator framework, and fully agentless 24×7 Video KYC—can make loans and insurance faster, safer, and more affordable. With Aadhaar-based KYC and consent-led data sharing already established, deeper investment can reduce processing delays, lower fraud risks, and cut delivery costs. 

Housing remains a priority. The ₹45 lakh affordable housing cap no longer reflects urban market realities; revising it can lower EMIs and revive housing-linked consumption. For businesses, extending ESOP tax parity to Udyam-registered MSMEs would support talent retention and formalisation. 

On taxation, while the New Tax Regime has raised the 30% slab threshold to ₹24 lakh, inflation continues to push professionals into higher brackets. Indexing the top slab to inflation or revisiting it could free up ₹2–3 lakh annually for savings and investments. This can be complemented by a flat deduction for long-term protection products—life insurance, health insurance, and pensions—without adding complexity. Collectively, these measures can enhance disposable incomes and align India’s credit and tax systems with current economic realities.” 

Akshay Taneja, CEO, TDI Infrastructure 

“India’s real estate sector operates in a tightly regulated environment, and what it needs most is policy stability and a long-term vision rather than short-term relief. With the Finance Bill 2026 being the last chance to set the stage before the new tax regime takes effect from April 1, the Budget must send clear, growth-oriented signals. Tier-2 cities across North India and NCR’s outer belt are emerging as key growth hubs, transforming into self-sustained residential and luxury clusters powered by major infrastructure upgrades.  

Revising the affordable housing definition from ₹45 lakh to atleast ₹70–75 lakh, granting full industry status to real estate, and recognising housing as a core part of national infrastructure will unlock institutional capital and significantly boost employment, with the sector contributing 7–8% of GDP, supporting over 5 crore jobs, and attracting NRI investments projected at 20% of sector inflows. Simplified tax structures, rationalised capital gains timelines with indexation, GST rationalisation, uniform stamp duty, and enhanced home loan deductions will strengthen affordability and buyer confidence. Coupled with a single-window clearance system, upgraded PMAY Urban 2.0, and increased incentive-linked funding, these measures will accelerate project delivery, create jobs, and foster integrated, community-centric townships across emerging cities.” 

Ashish Narain Agarwal, Founder & MD of PropertyPistol 

“India’s urban housing market is undergoing a sharp shift, with affordability declining and premium demand rising. HNI and NRI buyers now contribute ~18–20% of property investments, up from 7–10% a decade ago.  

Affordable housing (below ₹45 lakh) has fallen from ~37% in 2021 to ~18% in 2025, while luxury homes (above ₹1.5 crore) have increased from 9% to 29%. This mirrors a 50% rise in average prices across top cities over five years—from ₹6,001/sq ft to ₹8,990/sq ft. With urbanisation projected at ~9.2% CAGR through 2028, policy reforms are critical. The affordable housing cap must reflect evolving consumer patterns.  

Tax rationalisation—including unified capital gains, GST reduction on under-construction homes from 18% to 12% (ideally 5%), and uniform stamp duty—can unlock liquidity. Enhanced benefits for first-time buyers by 15–25%, along with full industry and infrastructure status, would attract institutional investment.” 

Vishal Raheja, Founder & MD, InvestoXpert Advisors 

“Union Budget 2026 must decisively unlock the next phase of India’s real estate growth by strengthening infrastructure-led development in Tier 2 and Tier 3 cities. Continued investments in airports, highways, urban transit, and digital infrastructure across emerging cities are already shifting demand beyond metros and creating new growth corridors. 

However, complex regulatory frameworks, prolonged approval timelines, and fragmented land-record systems continue to delay execution, increase costs, and weaken buyer confidence. Limited market transparency and inconsistent valuation standards further affect advisory accuracy, particularly for first-time homebuyers and NRIs. 

To address these challenges, the Budget should prioritise single-window approvals, faster and comprehensive land-record digitisation, creation of a national real estate transaction database, and rationalisation of stamp duty and transaction costs. Alongside sustained infrastructure investment, these reforms can enhance affordability, transparency, ease of doing business, and support balanced real estate growth across India.” 

Sunil Sisodiya, Founder & CEO, Neworld Developers 

“Continued policy stability and growth-oriented incentives will be critical in supporting India’s fast-evolving rental and holiday-home ecosystem, especially in high-tourism coastal markets. With India’s beachside tourism gaining global traction, there is a strong opportunity to position such destinations as world-class residential-hospitality hubs. 

To sustain this momentum, we look forward to government policy support that recognises the convergence of hospitality and residential real estate. Incentives around infrastructure financing, FSI flexibility, and hospitality-linked residential frameworks can unlock further investment, formalise the luxury rental market, and accelerate the development of high-quality, sustainable real estate.” 

Pete Nicholson, Senior Vice President, Nemetschek Group 

“As India prepares for the Union Budget, there is a strong opportunity to accelerate digital adoption across infrastructure projects to improve safety, quality, and resilience. India’s national highway network has expanded to over 1,46,000 km, marking a ~60% increase since 2013–14, driven by sustained public investment. However, challenges persist—480,000 road crashes with multiple fatalities in 2023, along with incidents of urban flooding and structural failures in 2025, underscore the need for data-driven planning and maintenance. 

The allocation of over ₹48,500 crore for high-speed corridors in Bihar and adjoining regions in last year’s budget reflects the scale of ongoing reforms. Integrating digital tools, geospatial analytics, and predictive modelling across dams, highways, and urban infrastructure can enhance efficiency, resilience, and sustainability. We hope the upcoming budget promotes incentives and frameworks for digital engineering and open standards across the sector.”