Union Budget 2026: Real estate eyes major reforms

Realty eyes Budget 2026 for eased approvals, single-window clearances, flexible zoning, data center/GCC support in Tier-2/3 cities, rental tax cuts, and AIF boosts to spur jobs/investments

India's real estate sector braces for Union Budget 2026 with high hopes for measures boosting affordability, operational ease, and funding access. Developers, buyers, and investors push for tax tweaks, swift approvals, and urban growth policies amid surging infrastructure investments.

A top priority is easing business hurdles in infra-driven projects plagued by multi-agency delays and regulatory overlaps that hike costs and miss deadlines. Experts call for time-bound decisions, predictable frameworks, and selective fiscal aid to sustain luxury and premium housing demand. Government focus on execution efficiency makes incremental fixes likely.

Another key ask is a unified single-window clearance system. State variations currently breed uncertainty, especially for commercial mega-projects. Linking RERA with national e-platforms could streamline central-state coordination, though full rollout may start with policy incentives for states.

The industry also seeks flexible zoning and land-use rules near transit corridors to spur mixed-use and transit-oriented developments. Complementary moves like GST rationalization and cheaper loans would enhance liquidity for large builds, with pilot’s probable given state dependencies.

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Support for new asset classes ranks high. Data centres’, Global Capability Centers (GCCs), and deep-tech hubs in Tier-2/3 cities need infra status, faster nods, and power boosts to fuel jobs via public-private partnerships—aligning neatly with digital economy goals for strong budget inclusion.

Rental reforms target low yields from global volatility and high taxes. Developers want the ₹2 lakh home loan interest deduction cap raised and GST cut on commercial leases to aid REITs and institutions. Enhanced Alternative Investment Funds (AIFs) could draw more capital through transparent, scalable rules.

Budget 2026 holds promise for structural shifts clarifying policies and execution. Even phased steps on approvals, emerging assets, and tax relief could lift confidence, driving long-term investments and GDP contributions in this vital sector.

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