What role does the real estate sector play in India's economy?

The real estate sector has transitioned into a primary growth catalyst for India's economy, supported by structural reforms and record performance.

What are the key proposals for the real estate sector in the Union Budget 2026-27?

Proposals include a concessional tax rate for GCCs, redefinition of affordable housing criteria, GST rationalization on construction inputs, and incentives for data centers and REITs.

How is the office market performing in India?

India's office market is experiencing record-breaking absorption, with Global Capability Centres (GCCs) being a significant driver of this momentum.

Home / Business and Economy / India Budget 2026: Real Estate Poised for Growth

India Budget 2026: Real Estate Poised for Growth

24 Jan

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Summary

Real estate sector is a primary growth catalyst for India's economy.
Capital inflows reached a record USD 14.3 billion in 2025.
Budget 2026 policy must sustain real estate's current momentum.

India Budget 2026: Real Estate Poised for Growth

India's real estate sector has evolved into a key economic growth driver, bolstered by structural reforms like RERA and GST. Capital inflows in 2025 reached an unprecedented USD 14.3 billion, with both office and retail segments experiencing record absorption. The upcoming Union Budget 2026-27 presents an opportunity to refine policy frameworks.

The office market, particularly Global Capability Centres (GCCs), is a cornerstone of growth. These centers have become innovation hubs, accounting for 35-40% of office leasing. To further incentivize their expansion, a concessional corporate tax rate of 15% for new GCCs is proposed.

Affordable housing faces challenges due to rising costs. Suggestions include redefining 'affordable' units to INR 75 lakh in tier-I cities and reintroducing the credit-linked subsidy scheme. Rationalizing GST on construction inputs is also recommended.