Budget 2026: Unlocking India's Rental Housing Potential with Tax Clarity, REIT Reforms

• India's rental housing market is underdeveloped despite rising demand from urbanization and young professionals deferring homeownership.
• Experts advocate for policy support in Budget 2026, including tax clarity, lower GST on rental construction, and incentives for build-to-rent projects.
• Strengthening the REIT framework is crucial to allow developers to recycle capital and make rental assets financially viable long-term.
• Rental housing should be treated as infrastructure, with targeted tax incentives for build-to-rent developments, especially near industrial hubs.
• Recognizing timely digital rent payments in credit profiles can enhance financial inclusion for millions of Indian renters, who currently lack formal credit access.

Why It Matters: Budget 2026 must prioritize rental housing through tax reforms, REIT enhancements, and credit recognition for renters.