Budget 2026: Here are the real estate stocks that could be in focus

Brokerage views suggest the Budget’s impact is likely to be stock-specific, with developers exposed to the affordable housing and mid-income segments expected to benefit more than pure luxury plays

• Real estate stocks to be in focus during Union Budget 2026
• Affordable and mid-income housing developers may benefit from policy support
• Analysts expect possible tax relief and increased PMAY allocation for housing

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Real estate stocks are expected to be in focus during the Union Budget 2026, with investors tracking potential measures around tax relief, affordable housing incentives and policy continuity. Brokerage views suggest the Budget’s impact is likely to be stock-specific, with developers exposed to the affordable housing and mid-income segments expected to benefit more than pure luxury plays

Among listed names, Motilal Oswal expects developers with meaningful exposure to affordable and mid-income housing to be the key beneficiaries if policy support materialises. The brokerage highlights Brigade Enterprises, Prestige Estates, Sobha, Kolte-Patil Developers, Mahindra Lifespace Developers, Godrej Properties, Sunteck Realty and Lodha Group as stocks that could benefit from a supportive policy environment. In contrast, Motilal Oswal flags that luxury-focused names such as DLF and Oberoi Realty could see relatively limited upside if incentives remain tilted toward affordability rather than premium housing.

Axis Securities, meanwhile, continues to prefer established developers with strong execution and balance sheets. Under its coverage, Prestige Estates and Oberoi Realty remain preferred names, while Godrej Properties and Puravankara are seen as potential beneficiaries of affordable housing incentives despite being outside active coverage.

On the policy front, analysts expect the government to continue its emphasis on affordable housing, building on earlier initiatives such as PMAY “Housing for All” and the SWAMIH fund for stalled projects. Motilal Oswal expects a possible increase in PMAY allocation and a revision in the affordable housing price threshold from Rs 45 lakh to around Rs 70 lakh, which could expand the eligible buyer base and support demand in urban markets.

Tax-related measures are also being closely watched. Axis Securities expects the Budget to consider raising the interest payment deduction limit under Section 24 from Rs 2 lakh to Rs 5 lakh, along with a possible revisit of tax holidays for affordable housing developers. Rationalisation of GST and stamp duty structures is also seen as a potential demand booster.

For the luxury housing segment, analysts do not expect meaningful fiscal incentives, with the focus likely to remain on easing execution-related hurdles rather than direct support. With demand in premium housing already relatively resilient, policy measures are expected to favour volume-led segments over high-end developments.

With much of the sector’s recovery already reflected in valuations, analysts expect investors to remain selective, favouring developers with strong brand equity, balance sheet strength and exposure to affordable and mid-income housing. The Union Budget 2026 will be closely watched for signals on housing incentives and tax relief, which could shape near-term sentiment across real estate stocks.