### Real Estate Sector's Urgent Call for Tax Cuts and Support in Budget 2026 As the Union Budget 2026 approaches, the Indian real estate sector is expressing significant concerns regarding the current state of affordable housing. Industry leaders are advocating for tax incentives and policy reforms to stimulate homebuying and address the affordability crisis. The sector is particularly focused on the need for higher thresholds for affordable housing, enhanced support for the Credit Linked Subsidy Scheme (CLSS), and streamlined regulatory processes to foster growth and stability in the housing market. The upcoming budget is seen as a pivotal moment to address these pressing issues and support the sector's recovery and expansion. ### Key Areas of Focus for Budget 2026 1. **Tax Incentives and Relief**: - The real estate sector is seeking tax cuts to enhance affordability and stimulate demand for housing [https://www.livemint.com/industry/infrastructure/real-estate-sector-eyes-tax-cuts-for-affordable-housing-as-fm-nirmala-sitharaman-gears-up-to-present-budget-2026-11768547515245.html]. - Industry leaders are calling for a redefinition of affordable housing to reflect current market conditions, suggesting an increase in the price cap from ₹45 lakh to ₹90 lakh [https://www.thenewsstrike.com/industry-leaders-share-pre-budget-2026-expectations-across-real-estate-professional-services-and-fmcg]. 2. **Support for Rental Housing**: - There is a strong push for policies that promote affordable rental housing to meet urban demand and improve access [https://www.aurumproptech.in/pulse/media/why-affordable-rental-housing-matters-in-budget-2026]. - Experts emphasize the need for incentives that encourage the development of rental properties, which are crucial for urban populations [https://www.hindustantimes.com/real-estate/budget-2026-wishlist-real-estate-sector-eyes-higher-affordable-housing-threshold-stronger-clss-support-101768464195204.html]. 3. **Infrastructure and Policy Clarity**: - The sector is advocating for improved infrastructure support and faster approval processes to enhance project execution and reduce costs [https://www.cnbctv18.com/economy/budget-2026-wish-list-real-estate-sector-seeks-tax-realism-faster-approvals-and-infra-led-growth-ws-el-19819945.htm]. - Clarity in policies regarding GST and other regulatory frameworks is deemed essential for fostering a conducive environment for growth [https://www.businesstoday.in/union-budget/story/budget-2026-real-estate-players-seek-tax-relief-to-boost-mid-income-housing-510486-2026-01-12]. ### Supporting Evidence and Data - **Current Market Conditions**: The existing ₹45 lakh cap for affordable housing is considered outdated, especially in high-growth cities where land and construction costs have surged [https://www.thenewsstrike.com/industry-leaders-share-pre-budget-2026-expectations-across-real-estate-professional-services-and-fmcg]. - **Demand for Tax Reforms**: Industry leaders believe that targeted tax reforms could significantly boost housing demand and support long-term growth [https://www.businesstoday.in/personal-finance/real-estate/story/budget-2026-what-tax-gst-and-credit-reforms-is-the-industry-expecting-to-further-boost-housing-momentum-510723-2026-01-13]. - **Impact of Infrastructure Investment**: Investment in urban infrastructure is seen as a critical factor for reviving the real estate sector and enhancing housing affordability [https://www.businesstoday.in/union-budget/story/budget-2026-investment-in-urban-infra-incentives-for-affordable-housing-real-estate-sector-510501-2026-01-12]. ### Conclusion: A Pivotal Moment for Real Estate in India In summary, the real estate sector is at a crucial juncture as it looks towards Budget 2026 for much-needed support. The following points encapsulate the sector's expectations: 1. **Tax Relief**: Urgent need for tax cuts and redefinition of affordable housing thresholds to stimulate demand. 2. **Rental Housing Support**: Emphasis on policies that promote affordable rental housing to meet urban needs. 3. **Infrastructure and Policy Clarity**: Calls for improved infrastructure investment and clearer regulatory frameworks to facilitate growth. The upcoming budget is viewed as a decisive opportunity to address these challenges and set the stage for a more sustainable and inclusive housing market in India [https://www.outlookmoney.com/real-estate/budget-2026-real-estate-expectations-make-affordable-housing-match-real-market-conditions].