Whalesbook
Focus Shifts to Policy Certainty
The Indian real estate sector is gearing up for Budget 2026, with industry leaders pressing for fundamental policy shifts rather than short-term incentives. The focus is squarely on achieving greater capital efficiency and shedding regulatory uncertainties that have historically hampered sustainable growth and investor confidence. Developers express a clear preference for reforms that foster long-term stability.
Capital Gains Clarity is Key
Industry veterans like Amit Modi of County Group state that the sector has matured beyond requiring frequent stimulus measures. "The real estate sector is a major contributor to the country’s GDP and a strong pillar of the Indian economy," Modi noted. "We expect Budget 2026 to focus less on subsidies and more on capital efficiency and policy certainty." This sentiment indicates a move towards structural improvements that can drive job creation and enhance the nation's economic resilience. Demand in the premium and luxury housing segments, particularly for properties exceeding ₹2 crore, remains robust. This sustained interest is largely fueled by end-users and high-net-worth individuals who view real estate as a stable, long-term asset.
GST Reform for Affordable Housing
Beyond capital gains, the sector is advocating for Goods and Services Tax (GST) reforms. Developers emphasize that regulatory ambiguity, especially concerning taxation, is now a critical deterrent. "What the sector now needs is rationalization of capital gains timelines and indexation benefits," Modi explained. Such clarity would empower developers to undertake larger, more ambitious projects and solidify India's standing as a desirable global residential investment hub. Siddharth Maurya of Vibhavangal Anukulakara Pvt. Ltd. suggests that redefining affordable housing and expanding the 1% GST benefit to more realistic price ranges in major urban centers could significantly reduce costs.
Infrastructure Boost Needed
Furthermore, lowering GST on developers' input services is seen as a direct path to improving construction quality and affordability. This move could make housing more accessible, aligning with national urbanization goals. Continued investment in essential infrastructure, including public housing schemes like PMAY (Pradhan Mantri Awas Yojana) and robust public transportation networks such as metro and regional rail, is also a priority. Maurya points out that these investments are crucial for real estate to serve as a stronger engine for job creation, consumption, and long-term wealth generation. The message to policymakers is clear: predictable tax rules, streamlined transaction frameworks, and sustained infrastructure development are vital for the sector's future.