Budget 2026: Real estate sector seeks industry status, single-window clearances
What's the story
Ahead of the Union Budget, India's real estate sector is pushing for a number of reforms. The demands include granting the sector an "industry" status, digitizing land records, and introducing a simplified single-window clearance mechanism. These measures are seen as key to speeding up approvals and reviving demand in this crucial industry.
Financial implications
Industry status would unlock cheaper long-term institutional credit
Industry bodies and developers believe that recognizing real estate as an "industry" would unlock cheaper long-term institutional credit, lower borrowing costs, and wider access to structured financing. The demand for industry status has been a long-standing one among developers who are optimistic about sustained policy support in the budget. This push comes amid a market consolidation toward larger developers due to the Real Estate Regulatory Act (RERA), GST, and housing policies at both Union and state levels.
Economic impact
Real estate can contribute up to 15% to India's GDP
Pradeep Aggarwal, founder and chairman of Signature Global (India) Ltd, highlighted that the real estate sector currently contributes around 7% to India's GDP and supports over 200 allied industries. He said granting industry status would improve access to institutional funding, enabling the sector to play a stronger role in job creation and economic growth. "Real estate has the potential to contribute up to 15% to India's GDP by 2047 with adequate policy support," he added.
Growth factors
Policy continuity needed for supply and demand support
Rajat Khandelwal, CEO of Tribeca Developers group, stressed the need for policy continuity that supports both supply and demand. He said granting industry status to real estate is vital as it would ease access to long-term capital, lower borrowing costs, and improve execution efficiency for developers. Khandelwal also highlighted the close link between real estate growth and infrastructure investment in urban areas.
Operational efficiency
Developers call for single-window clearances to cut red tape
Developers have also called for single-window clearances, bringing approvals from different authorities onto a common digital platform. This move is expected to cut red tape, reduce project gestation periods, and enhance transparency. Shorab Upadhyay, MD of TRG Group, said realtors are looking forward to a Union Budget that brings stability and confidence in the real estate sector.