Summary of this article
Budget 2026 may boost green housing adoption
Sustainable homes can significantly reduce energy costs
Tax incentives could improve green home affordability
India saw remarkable growth in the real estate sector in 2025, notwithstanding several external and geopolitical factors. Now, the real estate sector is looking forward to the upcoming Budget 2026 with anticipation, as it is being viewed as a vital turning point for the industry.
Sustainable Projects
In 2025, a special segment emerged in the real estate sector, comprising economical and sustainable homes. Recognising the rising energy costs and the ever-growing pressure on urban infrastructure, the government introduced policies that reinforced sustainable growth in this sector.
They now offer cost benefits to people who are investing in this segment. These initiatives in turn help the end-user invest in such projects while also being conscious of environmental growth. The demand for housing and sustainable homes is reinforced by these policies.
Energy And Electricity Usage
Residential set-ups account for over 24 per cent of overall electricity usage in the country. Against this, the policies that the Union Budget 2026 can introduce could significantly influence how homes in the near future are designed and financed, according to industry experts.
Says Manish Bansal, director, Window Magic: “The Union Budget 2026 has an opportunity to drive large-scale adoption of sustainable and energy-efficient housing in India. With buildings consuming nearly 40 per cent of the country’s total energy and residential homes accounting for over 24 per cent of electricity usage, policy support for energy-efficient construction is critical.”
Boost For Green Home Development
Industry experts have shared that the upcoming budget has the potential to accelerate the adaptation of green residences nationwide.
The market outlook also reinforces these trends. India’s green market is projected to reach $40 billion by 2030. This is pushed by regulatory and sustainability goals.
Budget 2026 can act as a catalyst for green residences, according to experts.
Bansal said the importance of affordability can be the driving force behind this, adding that “measures, such as GST rationalisation on sustainable materials, incentives for certified green products, and better access to green home financing can help make eco-friendly homes more affordable.”
Steps like this could help bridge the gap that often widens between the middle-income buyers and sustainable growth.
Another expectation that buyers can look out for in this Budget is a push for domestic manufacturing in this niche segment. Made in India can encourage a push for energy-efficient solutions in the real estate industry. “A strong focus on Made in India energy-efficient building solutions will support environmentally responsible housing while delivering lasting value to homebuyers,” Bansal added.
In the long-run, green investments are not just helping buyers. By lowering the operating costs in this segment, the government can make green homes accessible to a wider pool of homebuyers.
