Real estate industry players hope that the Union Budget 2026 will address affordability, streamline approvals and create a friendlier tax framework for homebuyers and developers alike.
Ramani Sastri, Chairman and MD of Sterling Developers, said that affordability remained the biggest hurdle for most buyers and hopes the Centre would raise the interest deduction limit under Section 24(b) from the current Rs 2 lakh to Rs 5 lakh a year.
"The real estate sector is also seeking rationalisation of GST on under-construction homes and quicker approvals to reduce project delays," Sastri said.
He also called for expanding the definition of affordable housing in urban areas, noting this would bring more buyers under the benefit net and boost end-user demand.
Harsh Jagwani, Managing Director of Notandas Realty, said that a Single Window Clearance System for new construction projects was long overdue and would accelerate both development and home-buying. He also stressed the need for digitisation of land and property records, cleaner land-title systems, and stricter escrow enforcement under RERA to reduce transaction risks.
"Cleaner land-title system, stricter escrow enforcement under RERA will also help reduce transaction risk and financing delays," he added.
Jagwani further noted that the luxury and premium segment is seeing growing demand, and policies encouraging Global Capability Centres (GCCs) could drive commercial real estate growth as global firms expand in India.
Coworking sector seeks GST relief
Manas Mehrotra, Founder of coworking firm 315Work Avenue, hopes the Union Budget 2026 will introduce a concessional, slab-based GST rate for coworking services, especially for startups and small businesses, to improve cash flows.
He also urged the removal of blocked input tax credit on interior fit-outs and the rationalisation of TDS on coworking payments, currently pegged at 10 per cent for land or building rentals.
"We request the government to introduce a concessional, slab-based GST rate for coworking services, especially for startups and small businesses, as it would meaningfully improve startup cash flows and accelerate entrepreneurship. For the coworking sector, the real advantage lies in improved cash flow management and working capital efficiency," he stated.
Mehrotra also underlined that competitive institutional finance and a single-window clearance push could help coworking spaces expand into non-metro cities as well.