Realtors flags supply gaps, affordability stress and investor confidence risks
As expectations build ahead of Union Budget 2026, India’s real estate industry is calling for a calibrated policy approach that strengthens housing demand, deepens infrastructure investment, and corrects emerging imbalances between premium supply and affordable demand. From established metros to new urban corridors, industry leaders stress that sustained growth will depend on confidence among homebuyers, smoother capital flows, and long-term urban planning.
Mr. Ankur Jalan, CEO of Golden Growth Fund (GGF), a Category II real estate-focused Alternative Investment Fund, says the upcoming Budget must address both demand-side support and institutional investment. “In mature urban markets such as Delhi, Mumbai and Bengaluru, extending tax incentives for homebuyers and maintaining a strong focus on urban infrastructure—especially transport, last-mile connectivity and sustainable utilities—will be critical to preserving long-term asset value,” he says. Jalan also calls for enhanced incentives for Alternative Investment Funds to encourage regulated, institutional capital into real estate, noting that such measures would improve execution certainty, boost investor confidence, and support broader economic growth.
Echoing the importance of infrastructure-led development beyond metros, Mr. Lalit Parihar, Managing Director of Dholera-based Aaiji Group, highlights the role of national infrastructure projects in unlocking new growth centres. “Continued investments in roads, logistics, airports, bullet train corridors, industrial corridors and smart city infrastructure are essential to realise the full potential of regions like Dholera as future economic hubs,” he says. Parihar adds that renewed policy attention on Special Economic Zones, including greater flexibility and fiscal incentives, could accelerate industrial and mixed-use development. He also urges GST rationalisation, extension of homebuyer tax benefits, easier access to institutional finance, and incentives for green construction to improve project viability and speed up delivery in emerging regions of Gujarat.
From a market-facing perspective, Mr. Vijay Harsh Jha, Founder and CEO of VS Realtors, flags early signs of stress in residential volumes despite strong value growth. “Sales are slowing due to a structural supply gap, particularly in homes priced below ₹1 crore, where demand remains robust,” he says, calling for targeted government intervention through tax breaks, access to affordable land, and supportive policies for developers. Jha cautions that while premiumisation has driven value growth over the past two years, it may not be sustainable amid job losses in the tech sector, moderating income growth, and rising global uncertainties. He stresses that continued housing loan incentives and buyer tax benefits are essential to restore balance and sustain inclusive growth.
Together, industry voices underline a common message: Budget 2026 must balance fiscal discipline with long-term urban vision—supporting affordability, infrastructure, and institutional capital—to keep India’s real estate growth resilient and broad-based.
