Budget 2026: Real Estate Seeks Tax Clarity Amidst Weakening Buyer Momentum

• Buyer momentum in India's housing market is weakening due to uncertainty over capital gains tax, GST costs, and infrastructure execution, despite existing demand.
• The market is shifting from luxury-led growth to a value-driven phase, with mid-income housing poised to anchor future growth.
• Experts call for enhanced tax relief for mid-income homebuyers and policy support for affordable and mid-market housing supply.
• Uncertainty around capital gains taxation, including increased LTCG and unclear indexation, has stalled transactions and deterred both buyers and investors.
• Rationalizing GST for under-construction projects, extending the 1% composition scheme, and increasing home loan interest deduction are key industry demands.

Why It Matters: Budget 2026 must provide tax clarity, rationalize GST, and accelerate infrastructure to revive real estate buyer confidence.