The Indian real estate sector is witnessing a strategic push for policy overhaul as it enters February 2026. Industry body **NAREDCO** has formally urged the government to implement structural changes to sustain the **Housing for All** mission, citing a sharp decline in affordable housing's market share from **38%** in 2019 to approximately **18%** today. Redefining Affordability A primary demand centers on the price cap for affordable housing. The industry is calling for the current limit of **₹45 lakh** to be raised to **₹75–80 lakh**. This shift reflects the reality of rising land and construction costs in Tier-1 cities, where the existing cap has rendered many projects unviable for developers. Tax Relief and Incentives To stimulate buyer demand, there is a strong recommendation to increase the home loan interest deduction limit under Section 24(b). The proposal seeks to raise this cap from **₹2 lakh** to **₹5 lakh**. Additionally, developers are pushing for **Industry Status**, which would allow access to cheaper institutional financing and lower overall project costs. The Rental Housing Pivot With rental yields in India currently stagnant between **1% and 3%**, private investment in rental stock remains low. NAREDCO and other bodies are advocating for a **National Rental Housing Mission**. This would include targeted tax incentives for developers and potential tax relief for tenants to formalize the segment and support urban workforce mobility. Market Performance and Projections The sector remains a massive economic pillar, projected to reach a market size of **$1 trillion by 2030**. * **Residential Growth:** Expected to expand by **8–9%** in 2026. * **Price Trends:** Capital values are expected to climb by **3–5%** this year. * **Government Outlay:** The Budget 2026-27 has significantly increased PMAY-Urban funding to **₹18,625 crore**, up from **₹7,500 crore** in the previous year. Emerging Trends While metro hubs like Bengaluru and Hyderabad continue to lead, **Tier-2 and Tier-3 cities** are gaining traction due to improved infrastructure. Furthermore, **NRI investment** is expected to contribute a record **18–20%** of the total market share by the end of 2026, driven by a preference for stable, long-term asset appreciation.