As the Union Budget 2026 nears, real estate leaders are urging urgent action. They want the government to revive affordable housing and strengthen rental options. Growth in the sector, they warn, is becoming too skewed toward luxury developments.
Anuj Puri, Chairman of ANAROCK Group, says India’s housing market looks strong but is structurally unbalanced. In 2025, new home sales volumes fell by 14%. Yet total sales value rose by 6%, hitting nearly ₹6 lakh crore. This shows a clear shift toward high-end properties.
To fix this, Puri recommends bringing back the 100% tax holiday under Section 80-IBA. That policy once boosted affordable housing launches. He also says the definition of “affordable” must reflect today’s prices. “A ₹45-lakh cap no longer works,” he noted. Instead, he proposes ₹95 lakh for Mumbai and ₹75 lakh for other major cities—while keeping current size limits.
Moreover, Puri stressed faster last-mile infrastructure development. Better roads, water, and power can unlock growth in emerging areas.
Niranjan Hiranandani, Chairman of NAREDCO, focused on rental housing. He believes it must be central to the “Housing for All” vision and asked the government to ease strict rules under Section 80-IBA(6)(da). He also wants tax benefits extended to five years for rental projects.
Additionally, Hiranandani suggested exempting rental income from stock-in-trade properties for five years after completion. Such investments take time to yield returns. He also criticized stamp duties based on outdated circle rates. These often overburden buyers and sellers. Furthermore, he warned that disallowing loss set-offs against house property income deters individual investors.
Anshuman Magazine, CBRE’s India & SEA CEO, said Budget 2026 must deepen affordability and boost consumption. He called for a clear, long-term urban redevelopment policy—especially in crowded cities facing supply gaps.
Magazine also pushed for single-window clearances to speed up approvals. He recommended green building incentives and more skilling in AI and machine learning. India’s rise as a GCC hub makes this urgent.
Pyush Lohia, Director at Lohia Worldspace, emphasized policy stability. He urged continued income tax rationalization to support buyer confidence. “Easier credit and simpler GST will help MSMEs,” he added. He also backed incentives for renewable energy, water conservation, and sustainable construction.
In conclusion, leaders agree: Budget 2026 real estate reforms must rebalance the sector. By supporting affordable and rental housing, the government can drive inclusive growth—ensuring real estate serves everyone, not just the wealthy.
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