Budget 2026: Real estate sector seeks industry status, single-window clearances

Budget 2026: Real estate sector seeks industry status, single-window clearances

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.

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.

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.