Budget 2026: Real Estate Seeks Tax Relief, Policy Clarity for Housing Revival

• The real estate sector is urging the government for tax exemptions and policy clarity in the upcoming 2026 Union Budget to boost housing demand and unblock stalled projects.
• Developers advocate for redefining the affordable housing limit, currently at ₹45 lakh, to ₹80-90 lakh, citing unaligned market conditions and high land/construction costs.
• Industry leaders like Shiv Garg and Aman Gupta propose reducing GST on Works Contracts from 18% to 12% and reintroducing Section 80EEA interest deductions to benefit first-time and middle-income homebuyers.
• The sector expects housing to be recognized as essential infrastructure, not just an asset class, to support India's rapid urbanization, particularly in Tier 1.5 and Tier 2 cities.
• Demands also include GST rationalization on under-construction homes and faster project approvals to encourage investment in sustainable housing and ensure long-term market stability.

Why It Matters: Real estate seeks significant tax and policy reforms in Budget 2026 to revive housing and support buyers.