Realty industry wants sharper tax relief, infrastructure investment and policy support
NEW DELHI, Jan 13 (The CONNECT) – India’s housing market is entering a new, more balanced phase, shifting away from a luxury-led upcycle towards value-driven growth anchored by mid-income buyers. Industry leaders say Budget 2026 is expected to play a pivotal role in this transition by improving affordability, recalibrating affordable housing definitions, and strengthening both demand- and supply-side levers. With premium demand showing signs of stabilisation, sharper tax relief, infrastructure investment and policy support for mid-market housing could help align prices with incomes, widen end-user participation and lay the groundwork for sustainable, long-term urban growth amid global economic uncertainties.
Tanuj Shori, Founder and CEO of Square Yards, said the momentum is clearly moving towards the mid-income segment as the next growth engine of the housing market. He noted that Budget 2026 should focus on enhancing affordability through higher tax relief for homebuyers, increased interest deduction limits and continued investment in urban infrastructure. Equally critical, he said, is encouraging supply in affordable and mid-market segments, as recent launches have been skewed towards higher ticket sizes. A budget aligned with these realities, Shori added, can strengthen end-user demand, improve price-to-income dynamics and support a more sustainable phase of urban housing growth.
Badal Yagnik, CEO and Managing Director at Colliers India, said Budget 2026 is likely to balance fiscal discipline with growth-oriented incentives, positioning real estate as a key driver of equitable development. He pointed out that revising and standardising affordable housing criteria to reflect Tier I city price realities could provide a significant demand-side boost. On the supply side, Yagnik said infrastructure augmentation and capacity building can unlock long-term growth across asset classes. He also highlighted the need to deepen real estate democratisation by making REITs and SM-REITs more attractive, while incentivising sustainability in built structures. According to him, the upcoming budget must lay a strong foundation for long-term growth, helping the sector withstand global volatility and trade frictions.
