Kamal Ghorui
As the Union Budget 2026 approaches, leaders in the real estate sector are urging the government to take urgent steps to revive affordable housing and strengthen rental housing, cautioning that growth in the sector is increasingly uneven and skewed toward luxury developments.Anuj Puri, chairman of ANAROCK Group, said India’s housing story remains strong on the surface but is structurally imbalanced. He highlighted that in 2025, new home sales volumes fell by 14%, yet sales value rose 6% to nearly Rs 6 lakh crore, reflecting a boom in luxury housing while affordable housing remains under stress.Puri called on the government to accelerate last-mile urban infrastructure development to further boost real estate growth. He also recommended reintroducing the 100% tax holiday under Section 80-IBA, which previously played a key role in boosting affordable housing launches and developer participation.He further suggested that Budget 2026 should update the definition of affordable housing to reflect current market realities. “A 45-lakh price cap no longer reflects real ground realities. Affordable housing threshold needs to be raised to at least 95 lakhs for Mumbai and 75 lakhs for other major cities whilst retaining the size norms,” he said, as quoted by ANI.Niranjan Hiranandani, chairman of NAREDCO (National Real Estate Development Council), believes that rental housing must be a central pillar of the government’s ‘Housing for All’ vision. He proposed removing stringent conditions under Section 80 IBA(6)(da) and extending tax benefits for affordable rental housing projects to at least five years. He also called for exempting rental income from stock-in-trade properties from taxation for five years after project completion, recognising the long-term nature of such investments.On taxation, Hiranandani noted that the current stamp duty system based on circle or ready reckoner rates often overburdens buyers and sellers. He also raised concerns about the disallowance of loss set-offs against house property income, which discourages individual investment in rental assets.Anshuman Magazine, chairman and CEO for India, South-East Asia, Middle East, and Africa at CBRE, urged Budget 2026 to deepen housing affordability while boosting consumption. He recommended strengthening rental housing policies and providing a clear long-term framework for urban redevelopment to address supply gaps in high-density cities. Magazine also highlighted the need for faster project approvals via single-window clearances, incentives for sustainable and green construction, and a focus on skilling in high-growth areas like AI and ML, especially as more MNCs look at India as a hub for Global Capability Centers (GCCs), reported ANI.Pyush Lohia, director at Lohia Worldspace, stresssedthe importance of policy stability, infrastructure-led capital expenditure, and continued personal income tax rationalisation to support consumer confidence and long-term growth.“Support for MSMEs through easier credit access and GST simplification will further strengthen economic momentum. Additionally, incentives for green construction, renewable energy, and water conservation can promote sustainable growth,” added Lohia.Industry leaders agreed that a balanced Budget 2026 addressing affordable and rental housing could be a decisive factor in reviving broad-based growth in the real estate sector.
