Ahead of the Union Budget 2026, the real estate industry has asked the government for major policy changes to boost housing demand and fix stalled projects. Industry groups say high land and construction costs have made current tax limits outdated, especially in fast-growing cities. The main issue is the ‘affordable housing’ price limit of ₹45 lakh. They argue this cap is no longer fit for big cities. It makes many projects unprofitable for builders and unaffordable for buyers. E. Ashok Kumar, president of CREDAI's Visakhapatnam Chapter, told The Hindu on January 12, “The ₹45 lakh ceiling and the associated 1% GST benefit are outdated. They do not account for the prevailing land and material costs in most development zones. We propose that the government increase this limit to ₹80–90 lakh.” He also suggested reducing GST on works contracts from 18% to 12%. This would help projects become viable and increase housing supply. The industry also wants better incentives for first-time homebuyers, especially those in the mid-income group. Kumar pointed out many buyers in this group miss affordable housing benefits due to the ₹45 lakh limit. They lose out on the 1% GST rate and other tax breaks. Other demands include bringing back the extra interest deduction under Section 80EEA and easing credit flow for developers. These moves could lower housing costs and reduce EMIs for buyers. Kumar urged the Centre to give the housing sector ‘infrastructure status’ rather than treating it just as an asset class. He praised schemes like PMAY-Urban 2.0 but said more changes are needed to turn policies into real housing supply in Tier 1 and Tier 2 cities like Visakhapatnam.