The Union Budget 2025-26 comes at a significant time for the Indian real estate sector, a key contributor to the nation’s GDP (Gross domestic product) and employment generation. In recent years, the sector has demonstrated resilience amid global economic uncertainties, with institutional investments touching $6.5 billion in 2024, a 22% year-on-year increase, according to ANAROCK Property Consultants.
However, challenges persist, such as escalating construction costs, urban housing shortages, and limited access to affordable financing. To reach the projected $1 trillion real estate market by 2030, as noted by Colliers India, the upcoming Budget must address critical issues, including affordable housing, rental policy reforms, and sustainability. The sector also anticipates bold measures to enhance liquidity, rationalise taxes, and incentivise green building practices.
With real estate directly influencing 53% of India’s GDP (CREDAI), the government’s approach in the Budget will be instrumental in defining the sector’s trajectory. 1. Addressing mid-income housing gaps This segment has long been overlooked, often caught between the extensive subsidies for affordable housing and the market-driven dynamics of luxury real estate.
However, mid-income housing constitutes a significant portion of urban demand, especially as middle-class incomes grow. According to a report by the National Housing Bank (NHB), urban housing prices increased by an average of 38% between 2018 and 2.
