As expectations rise ahead of the Union Budget 2026, Rakesh Reddy, Director, Aparna Constructions, has called for targeted policy reforms to unlock the full growth potential of India’s real estate sector, which he estimates could contribute over 15% to the country’s GDP in the medium term if key structural challenges are addressed.
Reddy emphasised that stable and predictable policy support will be critical to sustaining housing demand and improving affordability across segments. He highlighted the need for enhanced tax benefits on home loans, rationalisation of long-term capital gains on real estate investments, and a more contemporary definition of affordable housing to ease buyer stress and stimulate end-user demand.
He also underlined the importance of continued policy backing for credible developers operating in the luxury and premium housing segments, particularly in major metros and rapidly emerging markets. While affordability remains a priority, Reddy noted that the premium segment plays a crucial role in driving investor confidence, enabling large-scale urban development, and supporting employment across the construction and allied sectors.
With property prices and borrowing costs on the rise, affordability is expected to be a key focus area in Budget 2026. Reddy pointed out that in several metropolitan markets, housing EMIs now account for a substantial share of household income, highlighting the need for policy recalibration. He added that the current ₹45 lakh cap for affordable housing is no longer aligned with urban market realities.
As residential development expands into Tier-II and emerging cities, Reddy advocated a calibrated revision of the affordable housing threshold, along with faster project approvals and improved access to formal finance. According to him, these measures could ease repayment pressures, boost housing-led consumption across sectors, and support more sustainable and inclusive urban growth across the country.
