Finance Minister Nirmala Sitharaman presented the Union Budget 2026-27 on Sunday in Parliament where she announced a nearly 9% rise in Capital Expenditure for the next financial year, increasing the allocation to Rs 12.2 lakh crore in this year’s budget. While presenting the Budget in Parliament, she said the higher capital expenditure is meant to keep infrastructure projects moving and support overall economic growth.
The Union Budget 2026–27 has sent a positive signal to India’s real estate sector, underlining the government’s intent to strengthen housing and infrastructure-led growth, particularly across Tier 1 and Tier 2 cities. With a capital expenditure outlay of ₹12.2 lakh crore, the Budget reiterates the role of public investment in improving connectivity, accelerating urban development, and creating conditions that support sustained demand for residential and commercial real estate.
A key structural reform announced is the proposed Infrastructure Risk Guarantee Fund, aimed at offering calibrated credit guarantees during the high-risk phases of infrastructure and construction projects. This measure is expected to improve lender confidence, ease long-term financing constraints, and encourage greater private participation in large-scale developments. In parallel, the government’s push towards asset monetisation—especially through structured mechanisms for unlocking value from underutilised CPSE land assets—could release fresh capital into the system while strengthening the commercial real estate ecosystem.
The Budget also sharpens its focus on balanced urban expansion by prioritising emerging cities beyond established metros. Improved road connectivity, streamlined land-use frameworks, and infrastructure creation in fast-growing urban clusters could enhance livability and unlock new real estate corridors. While execution will remain critical, the policy direction points towards a more stable, confidence-driven environment for developers, investors, and homebuyers, with affordable housing and infrastructure continuing to anchor sectoral growth.
Gaurav K Singh, Chairman and Founder, Womeki Group
“The proposed increase in capital expenditure to ₹12.2 lakh crore, coupled with the Infrastructure Risk Guarantee Fund, sends a strong signal of policy stability and long-term commitment to infrastructure creation. By mitigating development-stage risks and strengthening credit availability, these measures will accelerate project timelines and improve overall viability for developers. In Delhi-NCR, where real estate demand is closely linked to infrastructure expansion, enhanced freight corridors, asset monetisation through REITs, and improved connectivity will drive growth across housing, commercial offices and warehousing, deepening investor confidence in the region.”
Bharat Thakran, CMD, GHD Group
“The government’s commitment to higher capital expenditure and the introduction of an Infrastructure Risk Guarantee Fund will strengthen lender confidence and fast-track infrastructure creation across the country. For Goa, these measures are especially significant. Improved connectivity, logistics efficiency and asset monetisation will enhance the state’s attractiveness for second homes, hospitality-led housing and long-term investments. With infrastructure acting as a growth catalyst, Goa’s real estate market is well positioned to see sustained demand from both end-users and investors seeking lifestyle-driven, future-ready assets.”
PRishabh Periwal, Senior Vice President, Pioneer Urban Land & Infrastructure Ltd
“The Union Budget 2026–27 marks a decisive shift for India’s real estate sector, moving towards a high-velocity urban economy by prioritising structural efficiency over mere expansion. The announcement of seven high-speed rail corridors, including the Delhi–Varanasi route, will significantly reduce geographical friction and unlock new growth corridors.
The introduction of the Infrastructure Risk Guarantee Fund and dedicated CPSE REITs brings much-needed financial security and institutional liquidity into the ecosystem. Additionally, incentivising domestic manufacturing of advanced equipment is a potential game-changer, helping shorten project timelines and reduce global dependencies.
For the luxury real estate segment, enhanced connectivity and faster execution will transform emerging micro-markets into sought-after urban hubs for HNIs, NRIs, and global investors.”
Apurva Muthalia, Business Head – Real Estate at Equirus Family Office
The creation of REITs for PSU-owned real estate assets can be a structural positive for both the public sector and capital markets. It enables PSUs to free up capital from their balance sheets while retaining operational control over strategic assets. At the same time, it deepens the REIT market by offering investors access to stabilised, income-generating assets leased to quasi-sovereign entities. This creates a strong proposition for retail investors, asset managers and institutional investors, while unlocking value for PSUs that own multiple commercial office properties.
Amit Prakash Singh,Co-Founder & CBO, Urban Money
“Budget 2026 marks a clear transition from stabilising the financial system to scaling credit delivery. Risk-sharing mechanisms, deeper bond markets, simpler tax compliance, and improved household liquidity together strengthen mortgage readiness, especially for first-time homebuyers, and set the foundation for sustained, housing-led credit growth.”
Mr. Sidharth Chowdhry, Managing Director, Dalcore
The Union Budget 2026–27, with a proposed capital expenditure of ₹12.2 lakh crore, reinforces the government’s commitment to infrastructure-led and balanced regional growth, particularly across Tier-2 and Tier-3 cities. For the luxury housing segment, especially in mature micro-markets like Golf Course Road, Gurugram, the Budget strengthens long-term fundamentals such as connectivity, institutional confidence, and planned urban development. Measures like asset monetisation through REITs and the Infrastructure Risk Guarantee Fund will further boost investor sentiment. At Dalcore, this aligns with our vision of creating globally benchmarked, design-led residential landmarks that support sustainable urban living as India progresses towards Viksit Bharat @2047.
Mr. Robin Mangla, President M3M India
The Union Budget 2026 reinforces the importance of infrastructure-led growth as a key driver for real estate. The increase in capital expenditure to ₹12.2 lakh crore provides long-term visibility for urban expansion, connectivity, and project execution, underpinning demand across both residential and commercial segments. These measures will strengthen the overall real estate ecosystem, improve execution confidence, and support sustained growth across key markets, aligning well with M3M’s focus on delivering world-class developments and reinforcing long-term investor confidence.
Yash Garg,Director, M3M Noida
The Union Budget 2026–27, with a capital expenditure outlay of ₹12.2 lakh crore and a continued focus on infrastructure development, provides a strong impetus for India’s real estate sector. Initiatives like the Infrastructure Risk Guarantee Fund and REIT-enabled asset monetisation are expected to enhance institutional capital flows and bolster developer confidence. At M3M, this reinforces our commitment to delivering high-quality, sustainable real estate projects while supporting India’s vision of Viksit Bharat 2047.
Mr. Pradeep Aggarwal, Founder & Chairman, Signature Global (India) Ltd.
“The Union Budget 2026 provides a strong and credible roadmap for India’s next phase of growth, led by a sharp focus on infrastructure, urban development, and financial reforms. The government’s decision to raise public capital expenditure to ₹12.2 lakh crore in FY27, a 9% increase over FY26, will play a critical role in accelerating project execution and crowding in private investment.
The creation of the Infrastructure Risk Guarantee Fund, along with the rollout of seven high-speed rail corridors and the operationalisation of 20 new national waterways over the next five years, will significantly enhance connectivity, reduce logistics costs, and improve the overall efficiency of the real estate and infrastructure ecosystem.
Urban development receives a sustained boost with an allocation of ₹5,000 crore per year for five years for City Economic Regions, alongside a continued focus on Tier-2 and Tier-3 cities as emerging growth centres. These measures will enable planned urbanisation, support civic infrastructure, and unlock housing demand across new geographies.
Further, accelerated recycling of CPSE real estate assets through dedicated REITs and continued emphasis on InvITs will deepen capital markets, improve liquidity, and strengthen investor confidence across the sector.
On the consumption side, income tax reforms— including no tax liability up to ₹12 lakh under the new tax regime, rationalised TDS and TCS rates, and reduced TCS on overseas tour packages to 2%—will enhance disposable incomes and ease compliance, providing indirect yet meaningful support to housing demand.
Overall, the Budget aligns strongly with the long-term vision of Viksit Bharat by 2047 and lays the foundation for sustainable, inclusive, and future-ready economic growth.”
Mr. Vikas Bhasin, Managing Director, Saya Group
The Union Budget 2026 proposals are, to a large extent, in line with expectations, particularly the government’s continued focus on sustained investment in infrastructure that truly connects people and regions. By strengthening physical and urban infrastructure, the Budget aims to make cities more liveable, efficient, and accessible for citizens across income segments.
The emphasis on Dedicated Freight Corridors, port-led development, and infrastructure expansion in Tier II and Tier III cities is expected to provide a significant boost to the housing sector. These measures will not only support real estate development in emerging urban centres but are also likely to have a positive spillover effect on overall housing demand and price stability in metro markets.
While property prices in Tier I cities are expected to remain largely range-bound, improved connectivity and infrastructure development will encourage residential growth in suburbs and satellite towns. This will enable homebuyers to access more affordable housing options slightly farther from central business districts, without compromising on connectivity to workplaces and major urban hubs.
Mr. Ashok Kapur, Chairman, Krishna Group and Krisumi Corporation
The Union Budget 2026–27 reinforces the government’s long-term commitment to infrastructure-led growth, which remains a critical enabler for the real estate sector. The emphasis on infrastructure, risk mitigation, and structured city growth aligns well with our long-term approach to creating high-quality developments that contribute meaningfully to India’s evolving urban landscape.
Creation of the Infrastructure Risk Guarantee Fund will enhance lender confidence in the infrastructure sector, which is expected to encourage greater private sector participation in large-scale projects. This bodes well for the real estate sector as real estate demand is closely linked to robust infrastructure and better connectivity.
Moreover, the move to accelerate monetisation of CPSE-owned real estate assets through dedicated REITs while at one hand may strengthen the institutional framework for asset recycling, on the other it may also provide much desired capital efficiency in the sector. Overall, this seems to be a neutral budget from the real estate sector perspective.
Mitesh Shah, CEO, Equirus Family Office
Foreign investors: the door opens wider
One of the most market-positive announcements is the widening of equity market access for individuals resident outside India. Here’s where things get interesting for markets. The Budget allows individuals resident outside India to invest directly in Indian equities—with investment limits raised from 5% to 10% per company, and the aggregate ceiling pushed to 24%.
This represents a structural shift, not a marginal tweak. Until now, foreign capital largely flowed through institutional channels—FPIs, offshore funds, the usual suspects. By opening direct access to individuals, India is diversifying its capital base. That should, over time, reduce volatility, improve liquidity and bring longer-duration money into the market. The relentless FII outlows were a cause of concern for the markets. For domestic investors, it further reinforces India’s positioning as a core allocation within global portfolios, rather than a tactical emerging-market trade.
Lalit Parihar, Managing Director, Aaiji Group, a Dholera-based real estate firm
“The Budget’s strong thrust on infrastructure through industrial corridors, manufacturing hubs, high-speed rail and dedicated freight corridors creates a powerful foundation for long-term real estate demand. The proposed ₹5,000 crore allocation per City Economic Region over five years in Tier II and III cities, including temple towns, is a significant catalyst for planned urban expansion. These measures will directly translate into improved connectivity, stronger employment clusters and greater investor confidence, driving sustained growth across residential, commercial, retail and logistics segments. Collectively, these initiatives will help transform emerging cities into viable economic centres and position real estate as a key enabler of India’s broader economic development.”
Mr. Amit Sharma, MD & CEO, Tata Consulting Engineers
The Union Budget 2026–27 sets a clear direction for India’s long term growth, with a strong focus on capital investment, manufacturing competitiveness and technology led development. Continued high spending on infrastructure strengthens confidence in execution and supports progress across transportation, urban development and logistics. The emphasis on high speed rail, alongside roads, metros, ports and urban infrastructure, signals a move towards next generation connectivity. Policy continuity on clean energy and grid strengthening supports energy security and transition, while the focus on advanced facilities such as semiconductors, electronics, data centres and pharmaceuticals builds domestic capability. Measures supporting hydrocarbons and chemicals, and metals and mining including rare earth corridors, strengthen critical supply chains. Overall, the Budget underlines the importance of delivery quality alongside investment scale, and Tata Consulting Engineers remains committed to converting this policy intent into future ready assets for the nation.
Badal Yagnik, CEO & Managing Director at Colliers India
The budget has taken a measured approach to balance India’s long-term growth ambition and inclusivity across regions & economic segments as well. The overarching growth theme is evident in the form of focus on manufacturing scale up in strategic sectors, rejuvenation of legacy industrial sectors, creation of champion MSMEs, infrastructure push, long-term energy security & stability and development of city economic regions. Indian real estate particularly stands to benefit from the targeted emphasis on manufacturing capability enhancement and infrastructure augmentation in the form of Dedicated Freight Corridors, high speed rail corridors, nationalization of inland waterways, development of urban clusters etc.
Driven by the budgetary focus, we expect traction in real estate requirement from textile, healthcare, semi-conductor & rare earth segments and firms within the Animation, Visual Effects, Gaming, and Comics (AVGC) and Artificial Intelligence (AI) domain. Interestingly, the proposed tax holiday for foreign cloud service providers will significantly accelerate data centre growth by attracting global hyperscalers and deepen long term investment in the segment, positioning India as a preferred hub for digital infrastructure and cloud based service economy. Furthermore, there is a clear focus on identifying and leveraging the growth drivers of Tier II & III cities including temple towns. Meanwhile, the pertinent focus on tourism, training, skill development, creation of infrastructure will have a positive domino effect on the real estate sector in the areas of hotels, guest houses, second homes and primary housing as well. Overall, the budget has emphasized strengthening competitiveness and augmenting manufacturing capabilities by integrating into the global value chain. In fact, India looks poised to move beyond capacity creation into capability building, which is likely to form the blueprint of sustained long-term growth, especially in these times of global uncertainties.
Tanuj Shori, Founder and CEO, Square Yards
“The Budget’s continued focus on capital market deepening and asset recycling, including monetisation of public sector real estate through REIT structures, reinforces the role of REITs and InvITs as mainstream investment vehicles. We are likely to see a steady rise in new REIT and InvIT listings over the medium term, covering office assets, retail centres, logistics parks, data centres and infrastructure portfolios. For retail investors, this expands access to high-quality, income-generating real assets that were earlier largely available only to institutions. They offer the dual benefit of regular yield visibility and participation in long-term asset appreciation, while providing liquidity through listed markets. Over time, these investment engines in the market will also improve transparency, valuation discipline and governance across the real estate ecosystem, strengthening overall investor confidence.”
Shrinivas Rao, FRICS, CEO, Vestian
“The Union Budget 2026 outlines a clear roadmap towards achieving Viksit Bharat by 2047, with a strong emphasis on accelerating the digital economy, upskilling the future workforce, strengthening infrastructure, promoting tier-2 and tier-3 cities, and reforms to ease financing from foreign investors. The budget aims to strengthen the growth ecosystem of the real estate sector by enhancing connectivity between emerging and established urban centers and by promoting the development of economic regions. These measures are expected to attract GCCs to tier-2 and tier-3 cities, enabling them to leverage cost efficiencies and long-term growth opportunities. Additionally, the data centre industry is poised for heightened traction following the announcement of a tax holiday till 2047. The budget also charts a clear growth trajectory for the hospitality sector through focused initiatives aimed at boosting tourism.”
Amit Goyal, Managing Director, India Sotheby’s International Realty
The Union Budget 2026 underscores policy continuity and a sustained focus on infrastructure and urban development, both critical for real estate growth. A stable macro framework and fiscal discipline reinforce long-term confidence, especially in premium and luxury housing. For discerning buyers, improved urban livability and economic resilience remain key drivers, even as global uncertainties influence near-term sentiment.
Aakash Patel, Managing Director, Atul Projects
“Mumbai’s real estate market will benefit from infrastructure investment as part of India’s budget. Since FY2014-15, the public capital outlay has grown from ₹2 lakh crores to ₹11.2 lakh crore (as per the BE 2025-26) with a proposal of an additional ₹12.2 lakh crore for FY2026-27, establishing long-term certainty and confidence in the development of cities. The creation of the Infrastructure Risk Guarantee Fund will reduce the risk of building and financing properties. An additional benefit of the government’s reduction in TDS on NRI property sales will create liquidity to enable greater global investment in the Mumbai property market. Continued government support for the development of REITs and InVITs will help facilitate institutional investment in urban infrastructure and completion of projects will require accelerated processing and coordination to convert public sector funding into fast and efficient building processes and greater buyer confidence.”
Kalyan Chakrabarti, CEO, Emaar India
“We welcome the Union Budget 2026-27, which continues to take strong steps towards the vision of Viksit Bharat by focusing on sustainable economic growth, infrastructure expansion, and inclusive development. India’s economic trajectory, marked by stability, fiscal discipline, and sustained growth, reflects the government’s continued focus on building a resilient and competitive economy.
For the real estate sector, we are particularly encouraged by the initiatives such as accelerating asset monetisation through REITs and continued infrastructure development in cities with over 5 lakh population, including tier-2 and tier-3 markets. These measures will support balanced urban growth, improve liveability, and create new opportunities for communities across the country. At Emaar India, we remain committed to contributing to this growth journey by developing world-class, future-ready communities that align with India’s evolving aspirations.
The strong focus on boosting manufacturing, empowering MSMEs, and accelerating infrastructure development, along with the push for advanced technologies like AI and long-term stability, will help strengthen India’s competitiveness and support sustainable growth. The next few years present a significant opportunity to drive inclusive growth across regions and communities. At Emaar India, we remain committed to supporting the government’s vision by delivering projects that embody quality, innovation, transparency, and sustainability.”
Khursheed Alam, Founder, Atmos Systems
“The Union Budget 2026 reinforces India’s focus on strengthening manufacturing and infrastructure, creating a robust ecosystem for technology-driven logistics and material handling solutions. Continued investments in infrastructure and capital expenditure provide the long-term visibility needed to scale automation and digitalisation across warehouses and supply chains. At ATMOS Systems, we remain committed to delivering advanced, efficient, and sustainable warehouse automation solutions that support India’s industrial growth and evolving logistics needs.”
Sorab Agrawal, Executive Director, ACE
“The Union Budget 2026 clearly recognises construction and infrastructure equipment as a critical enabler of India’s growth and execution capacity. The increase in capital expenditure to ₹12.2 lakh crore reinforces long-term momentum for infrastructure development, while the announcement of a dedicated scheme for enhancement of construction and infrastructure equipment signals a strong policy focus on productivity, safety, and technological capability at project sites. This approach will support faster project execution, reduce import dependence, and strengthen domestic manufacturing of advanced construction equipment. For Indian manufacturers like us, it provides a stable and enabling framework to scale innovation and support India’s infrastructure ambitions “
Nagendra Nath Sinha, MD, Rodic Digital & Advisory
“The Union Budget for FY27 presents a strong, execution-focused outlook for the transport and infrastructure sector. Despite continued fiscal consolidation, the 9.1% increase in transport sector outlay to ₹5.98 lakh crore underscores the government’s sustained emphasis on infrastructure development. Enhanced allocations under the Scheme for Incentives to States for Creation of Infrastructure (SASCI), along with the development of City Economic Regions and proposed University Townships near industrial and logistics corridors, are expected to significantly boost infrastructure creation.
Equally important are measures to improve access to finance, including the Infrastructure Risk Guarantee Fund and steps to deepen bond and municipal markets, which will strengthen private participation. The focused push on enhancing construction and infrastructure equipment manufacturing is particularly encouraging, as it will reduce import dependence and enable faster, more efficient project execution. Overall, the FY27 Budget provides a balanced framework. We wholly commend Hon’ble Prime Minister and the Finance Minister for providing growth impetus and addressing sector pain points”.
Mr Ravi Saund, Founding Director of Emperium Group
Mr Ravi Saund, Founding Director of Emperium Group said, “We wholeheartedly applaud the Finance Minister’s announcement to increase the Capital Expenditure to ₹12.2 lakh crore for FY27. This continued momentum, alongside the strategic interventions in ‘Developing city economic regions’ and ‘Delivering a powerful push for infrastructure,’ is a clear signal of the Government’s intent to build a ‘Viksit Bharat.’
We are particularly excited by the specific focus on developing infrastructure in Tier 2 and Tier 3 cities with populations over 5 lakh, explicitly recognizing them as the new ‘growth centers’ of India. The addition of new Economic and Freight Corridors will act as the critical connectivity layer for these regions, unlocking massive potential for organized real estate. This visionary move will not only de-congest metros but also create thriving new urban ecosystems where aspirational India can live and work. It aligns perfectly with the sector’s long-term growth story.”
Neeraj Balani, Chief Customer Officer, Welspun One
“The Union Budget 2026–27 reinforces a decisive shift in India’s growth strategy, away from metro-centric development toward a broader network of emerging industrial and logistics hubs. The focus on City Economic Regions, Tier II and Tier III cities, and continued investment in Dedicated Freight Corridors significantly expands the opportunity landscape for institutional Grade-A warehousing and industrial infrastructure that supports manufacturing, e-commerce and modern distribution networks.
The emphasis on revitalizing legacy industrial clusters through infrastructure and technology upgradation will unlock redevelopment potential in manufacturing-led regions, while targeted measures to enable manufacturing units in SEZs and strengthen bonded warehousing further support export-oriented supply chains. At the same time, policies encouraging REIT-led asset monetization and institutional capital deepen confidence for long-term, patient investment into nation-building infrastructure.
Together with support for export-linked trade and a progressive policy framework for data center’s and digital infrastructure, this Budget sets the stage for the next phase of India’s logistics sector, transitioning from fragmented assets to integrated logistics ecosystems driven by scale, operational efficiency and sustained value creation across emerging industrial corridors.”
Mr Anuj Mehta, Director, Dhuleva Group
“The core fundamentals of Mumbai’s real estate market will be strengthened by Budget 2026–27 through the prioritisation of creating urban capacity for the long-term, as opposed to short-term measures. Continued increases in public capital expenditures alongside the implementation of the City Economic Regions framework will create greater infrastructure depth throughout the Mumbai Metropolitan Region and reinforce the demand for residential and commercial properties in well-located micro-markets. Likewise, the implementation of an Infrastructure Risk Guarantee Fund will significantly help real estate developers to reduce the risks associated with construction while also improving access to financing during that phase. Further, the creation of asset monetisation through dedicated REITs will confirm that the capital markets supporting property assets are maturing. NRI taxation clarifications and TDS considerations will make it easier for global investors to participate in the Mumbai real estate market and reaffirm that Mumbai is a stable long-term investment location.”
Mr Cyrus Mody, Founder & C.E.O., Viceroy Properties
“Through Budget 2026-27, a capital-expenditure-driven growth strategy will be implemented. Public capital expenditure is expected to increase to ₹12.2 lakh crore, allowing for long-term execution certainty for the infrastructure pipeline in Mumbai. The focus on providing financing enhances the contribution of the City Economic Regions while enhancing both connectivity and depth of infrastructure across suburban growth nodes, thereby solidifying Mumbai’s position as the anchor of the larger Mumbai Metropolitan Region. In addition to providing greater clarity regarding capital markets, the government has introduced the infrastructure risk guarantee fund (IRGF) and has also accelerated asset recycling for Central Public Sector Enterprises (CPSE) real estate through dedicated real estate investment trusts (REITs). This signals an established and maturing capital markets framework to facilitate project viability in high-value urban markets, such as Mumbai. As an extension of this commitment to executing infrastructure projects, increasing regional connectivity and participation of institutional capital will contribute to Mumbai being regarded as a long-term, stable real estate investment location, primarily based on its fundamentals rather than on any short-term incentives.”
Dr. Nitesh Kumar, MD & CEO, Emami Realty Ltd
The Union Budget 2026-27 presented by Finance Minister Nirmala Sitharaman today marks a significant step forward for India’s real estate sector, emphasizing sustainable growth and infrastructure-led development. The increase in public capital expenditure to ₹12.2 trillion for FY2026-27 will undoubtedly accelerate urban infrastructure projects, creating new opportunities in Tier 1 and Tier 2 cities where demand for quality housing and commercial spaces is surging.
The proposal to establish dedicated Real Estate Investment Trusts (REITs) for recycling significant real estate assets held by Central Public Sector Enterprises is a game-changer, unlocking underutilized land and fostering greater investment in the sector. Additionally, the Infrastructure Risk Guarantee Fund will provide much-needed credit guarantees, reducing risks for lenders and enabling smoother financing for large-scale developments.
We are optimistic that these measures will enhance affordability, boost rental housing initiatives, and drive overall sectoral momentum. This budget aligns well with our vision of creating future-ready communities, and we look forward to contributing to India’s Viksit Bharat journey.
Mr. Puneet Vidyarthi, Head of Brand Marketing, CASE Construction India & APAC and President, Rural Marketing Association of India
“The Budget’s continued focus on infrastructure-led growth beyond metros is a positive signal. Greater emphasis on connectivity and localised development can help accelerate economic activity across semi-urban and rural markets. As development expands closer to these regions, building skills at the grassroots level becomes equally important to support efficient execution and long-term impact. Together, these measures can contribute to more balanced growth while strengthening local economies and market potential.”
Mr. Sunil Nair, CEO of Ramky Infrastructure Ltd
“The Union Budget 2026 underscores a clear continuity of confidence in India’s infrastructure growth story. The proposal to establish an Infrastructure Risk Guarantee Fund is a particularly forward‑looking intervention, it directly addresses one of the biggest hurdles in the sector: risk perception during the early stages of project development and construction. By offering partial credit guarantees to lenders, the Fund will not only ease financing bottlenecks but also embolden private players to invest in new, large‑scale projects with greater assurance.
Equally significant is the government’s move to accelerate asset monetisation through dedicated Real Estate Investment Trusts (REITs) for Central Public Sector Enterprise (CPSE) owned real estate. This will unlock dormant capital, enhance liquidity in the system, and catalyse a new wave of investments across allied sectors like logistics, housing, and industrial infrastructure.
Complementing these reforms, the Budget’s thrust on industrial infrastructure through the Chemical Park and bulk drug park, Biopharma Shakti schemes enhances India’s manufacturing and innovation ecosystem. The Chemical Park and bulk drug park will create plug‑and‑play clusters to boost domestic chemical production and reduce imports, while the ₹10,000 crore Biopharma Shakti initiative aims to build a globally competitive biopharma ecosystem through new NIPERs, clinical trial networks, and upgraded regulatory standards.
Finally, with a proposed capital expenditure of ₹12.2 lakh crore for FY 2026‑27, the Budget reaffirms infrastructure as the backbone of India’s economic momentum. These measures together create a balanced ecosystem, de‑risked, capital‑efficient, and geared towards sustainable, high‑velocity growth. For developers like Ramky Infrastructure, this paves the way for deeper partnerships in nation‑building.
Shreya Anand, Director, Vedaanta Senior Living
The perspective focuses on the recognition of caregivers and the growing importance of structured, service-led real estate such as senior living.
“The recognition of caregivers in the Union Budget 2026–27 is a much-needed and welcome step. As India’s ageing population grows, acknowledging and strengthening the caregiver ecosystem is critical to building sustainable senior care solutions. The Budget’s emphasis on structured real estate and institutional frameworks is also a positive direction, as it supports service-led real estate formats such as senior living, in line with global trends. While the Budget remains largely conservative, these measures provide the right foundation for organised senior living communities like Vedaanta to scale responsibly and deliver dignified, community-centric ageing solutions.”
Anantha Keerthi, Senior Partner, Vector Consulting Group
“For the financial year 2026–27, the government has proposed increasing capital expenditure on infrastructure to ₹12.2 lakh crore, reinforcing the momentum built over recent years. This underscores infrastructure’s central role in India’s growth and development strategy. However, persistent challenges remain, as higher allocations alone do not automatically resolve cost and schedule overruns. The real test will be whether this increased outlay translates into stronger upfront project design and more robust Detailed Project Reports (DPRs).
Most large infrastructure projects in India experience 55%–60% cost overruns and 30%–70% time overruns, largely stemming from weak early-stage planning, particularly inadequate DPRs. A portion of the budget must therefore be explicitly directed toward rigorous pre-construction planning. High-quality DPRs reduce delays, rework, and disputes, unlocking significant savings and enabling the country to build more infrastructure with the same resources. Strengthening investment in pre-construction activities can play a pivotal role in improving timelines, coordination, and long-term project performance.”
Lakshmi Narayana G, Designated Partner (Laxmi Infra), GHR Lakshmi Urbanblocks Infra LLP
The Union Budget 2026 positions real estate as a key growth engine by building a more stable, capital-efficient ecosystem that reduces project risk and attracts institutional investment – a critical need for premium, sustainable housing in fast-growing markets like Hyderabad.
The push for Green Credits and incentives for sustainable construction technologies – such as dry construction methods and recyclable materials – signals a clear policy shift toward environmentally responsible development. The Construction and Infrastructure Equipment (CIE) scheme, with its focus on advanced and energy-efficient equipment including modern lift systems for high-rises, further supports this transition toward smarter, greener buildings.
On the demand side, simplified NRI transactions – especially PAN-based TDS compliance without the need for a TAN – can significantly reduce friction for overseas buyers, making Indian real estate more accessible and investment-friendly.
Importantly, the Budget’s emphasis on sustainable urban renewal across housing segments — from mid-income to premium – along with credit guarantees and process simplification, empowers developers to create more inclusive, well-planned communities. Growth corridors such as Kokapet and Neopolis in Hyderabad are well-placed to benefit from improved financing access and green incentives, enabling projects with smart technologies, global certifications, and future-ready amenities.
From a premium developer’s perspective, the real opportunity lies in building integrated townships that balance density, sustainability, lifestyle, and livability — ensuring that growth remains equitable for both developers and homebuyers, while meeting the rising aspiration for high-quality urban living.
Kunal Bajaj, CEO & Co-Founder, CloudExtel
“Union Budget 2026 sends a clear and timely signal that infrastructure-led growth, including digital infrastructure, remains central to India’s economic strategy. The record capital expenditure allocation and the continued emphasis on large-scale infrastructure development underscore the government’s commitment to building long-term economic capacity.
For the telecom and connectivity ecosystem, the Budget’s focus on City Economic Regions, expansion of logistics and industrial corridors, and accelerated development of Tier II and Tier III cities is especially significant. These initiatives are expected to drive sustained demand for high-quality fibre networks, edge-ready digital infrastructure, and scalable, carrier-neutral facilities that can support growing enterprise and consumer data needs.
The broader policy push towards technology-enabled growth by spanning digital public infrastructure, AI adoption, and advanced manufacturing further strengthens the case for increased investment in cloud-ready and data-driven ecosystems. As economic activity becomes more distributed beyond major metros, proximity-led infrastructure such as edge data centres and low-latency networks will become increasingly critical.
As India progresses towards a USD 5-trillion-plus digital economy, the Budget reinforces an important reality: reliable connectivity, scalable data infrastructure, and resilient networks are no longer optional as they are foundational utilities. At CloudExtel, we view this Budget as a catalyst for deeper collaboration across telecom operators, cloud providers, and enterprise ecosystems to future-proof India’s digital growth.”
Ramarathinam Sellaratnam, Group CEO & Managing Director, iBUS Networks
“Union Budget 2026 reflects a clear, future-oriented vision for India’s digital economy and how the country is approaching connectivity not just as infrastructure, but as an intelligent, AI-enabled digital ecosystem. The proposed tax holiday for data centres is a particularly significant step, as data infrastructure forms the backbone of every digital service. This move positions India strongly to emerge as a global hub for data centres, serving both domestic and international demand.
Digital infrastructure is fundamental to economic growth, and this Budget rightly recognises that we are all stakeholders in this digital ecosystem. The parallel push on physical infrastructure, especially roads and urban development, creates a reinforcing impact on digital growth. As transport-oriented development expands, it unlocks new corridors for digital connectivity.
The emphasis on urban as well as Tier II and Tier III infrastructure development and enterprise digitisation will drive greater demand for integrated fibre, in-building digital infrastructure, and intelligent network management.
At iBUS Networks, we view this Budget as distinctly futuristic, accelerating the convergence of physical and digital infrastructure. Together, these measures will enable India to build resilient, scalable, and intelligent connectivity foundations that support long-term economic growth and global digital leadership.”
Pankaj Agrawal, Chairman, Shaurrya Teleservices
“Union Budget 2026 provides a strong impetus to India’s digital infrastructure and telecom ecosystem through its sustained capital expenditure push and a clear focus on AI, cloud services, and large-scale data centre development. The reinforcement of the IndiaAI Mission, multilingual digital platforms for farmers, and technology-driven support for MSMEs reflects how innovation is being embedded across sectors to drive productivity, inclusion, and enterprise growth. The long-term tax holiday for global cloud providers and data centre operators is a landmark move that positions India as a future global digital hub, attracting investment while strengthening domestic digital capabilities. By prioritising infrastructure-led growth, the Budget recognises the critical role telecom networks play in enabling digital services, MSME digitisation, and enterprise transformation. The focus on Tier II and III cities will further accelerate demand for robust, future-ready connectivity. At Shaurrya Teleservices, we see Budget 2026 as a strong step toward building a resilient digital backbone for India’s expanding digital economy.”
Umang Bansal, Chairman, Polo Elevators
“The Union Budget 2026 is a forward-looking and very encouraging step for India’s manufacturing sector. With Aatmanirbharta at its core, the focus on scaling up seven strategic sectors, rejuvenating legacy industries, and creating Champion MSMEs shows that the government is committed to building a resilient and self-reliant industrial ecosystem. The ₹10,000 crore SME Growth Fund, along with measures to enhance skill development and access to new markets, will empower manufacturers to formalize processes, upgrade technology, and compete confidently on the global stage. At Polo Elevators, this aligns perfectly with our mission to deliver high-performance lifts and critical construction equipment that support the country’s infrastructure and urban growth.
We also welcome the expansion of the Electronics Components Manufacturing Scheme to ₹40,000 crore and the introduction of the Construction and Infrastructure Equipment scheme. Strengthening domestic manufacturing of technologically advanced equipment, from elevators and firefighting systems to tunnel-boring machines for metros and high-altitude roads, will help companies like ours invest in innovation, enhance supply-chain resilience, and create high-quality jobs. Taken together with the focus on city economic regions and long-term infrastructure development, the Budget provides a strong foundation for Indian manufacturing to grow sustainably, drive exports, and contribute meaningfully to the country’s USD 7 trillion economy vision”.
Anil Mittal, Chief Financial Officer, Smartworld Developers
Budget 2026 lays out a pragmatic roadmap for India’s urban future, anchored in a sustained infrastructure push and clear policy direction that channels long-term investment into major metropolitan markets. In Tier-1 cities, where connectivity, mass mobility and civic infrastructure are key demand drivers, the focus on capex-led growth and regulatory certainty strengthens market confidence and supports sustainable real estate development. As the sector builds enduring urban communities, consistent policy signals and robust infrastructure will remain the foundation for quality housing and long-term value creation.”
Sam Chopra, President and Country Head, eXp Realty India
“India is moving from city building to region building. High-speed corridors and logistics networks will create City Economic Regions, but their success will depend on governance—especially transparent resale markets, escrow discipline and professional intermediary accountability.”
Parveen Gupta, Director, Ramacivil India, on Infrastructure and Construction
“The government’s push to increase public capital expenditure to over ₹12 lakh crore reflects a robust commitment to infrastructure-led growth and economic resilience. Combined with initiatives like the Infrastructure Risk Guarantee Fund and asset monetization through REITs and InvITs, this will strengthen private sector confidence and accelerate execution of large-scale projects.
For the construction and real estate sectors, this creates unprecedented opportunities to deliver high-quality, technology-driven projects, improve productivity, and drive sustainable urban development. With a clear focus on over 5,000 Tier 2 and Tier 3 cities and emerging city economic regions, this infrastructure push is set to generate employment, enhance connectivity, and catalyze long-term growth across India’s built environment.”
Samir Jasuja, founder and CEO, PropEquity,
The Budget’s emphasis on infrastructure-led growth, development of industrial corridors and manufacturing hubs, data centres, high speed rail corridors, dedicated freight corridor, recycling of significant real estate assets of CPSEs through dedicated REITs, Rs 5000 crore allocation per city economic regions (CER) over 5 years in tier 2&3 cities including temple towns are step towards amplifying the potential of these cities to deliver the economic growth. The consequent impact of this will propel the growth of real estate across categories and pave the way for comprehensive development of the Indian economy.
Amit Gossain, Chairman and Managing Director, KONE Elevators India & South Asia
We welcome Budget 2026 and its clear focus on strengthening India’s infrastructure-led growth. The emphasis on urban development, particularly across tier-2 and tier-3 cities, will play an important role in advancing smart urbanisation and modern vertical construction. This creates meaningful opportunities for companies like KONE India to support the next phase of India’s city-building journey.
The proposed capital expenditure of ₹12.2 lakh crore for FY27, along with continued focus on R&D and digital capabilities, sends a strong signal towards innovation, efficiency, and long-term competitiveness. These measures will help accelerate infrastructure creation, improve logistics, support employment, and contribute to more sustainable and future-ready cities.
At KONE India, we look forward to contributing to this momentum by bringing safer, smarter, and more sustainable mobility solutions to India’s growing urban landscape. Budget 2026 provides a positive and enabling roadmap for the infrastructure sector and reinforces confidence in India’s long-term growth story.
Jayant Kumar, Managing Director and General Manager at Hilti India
“Budget 2026 reinforces India’s infrastructure-led growth with FY27 capital expenditure of ₹12.2 lakh crore and a strong push across Tier 2 and Tier 3 cities. Investments in highways, metros, railways, airports, power, seven high-speed rail corridors and new National Waterways will significantly accelerate construction activity and project scale.
The proposed Infrastructure Risk Guarantee Fund, asset recycling through REITs, and the scheme to boost construction and infrastructure equipment (CIE) manufacturing will further scale up domestic production of advanced machinery and reinforce Make in India, strengthening financing as well as on-ground execution.
As project scale and complexity increase, the industry will need to build faster while raising the bar on how construction is delivered. Guided by our purpose of making construction better, Hilti India remains committed to being a long-term partner to the infrastructure ecosystem, supporting employment, allied industries and India’s journey towards a developed economy.”
Shrivallabh Goyal, CEO & Whole-Time Director, Model Economic Township Ltd. (Reliance MET City)
The Union Budget 2026–27 reinforces the government’s clear commitment to infrastructure-led growth as the cornerstone of economic expansion, employment generation, and nationwide connectivity. The enhanced capital expenditure outlay of ₹12.2 lakh crore signals a decisive focus on building world-class physical and industrial infrastructure. This investment goes beyond headline numbers, translating into tangible progress across transport corridors, modern logistics networks, urban infrastructure, and industrial ecosystems; particularly in emerging Tier-2 and Tier-3 cities.
The Budget’s strong emphasis on urban development further strengthens this momentum. With increased focus on urban housing, mobility, and city-level services, the government is laying the foundation for sustainable, liveable, and investment-ready cities. Integrated developments such as Reliance MET City exemplify this approach, where industrial infrastructure, urban planning, and workforce ecosystems converge to support long-term economic activity. Such targeted urban and industrial development will be critical in attracting private investment, enabling seamless urbanisation, and advancing India’s growth ambitions on the path to Viksit Bharat 2047.
Ajitesh Korupolu, Founder and CEO of ASBL
“As a developer rooted in Hyderabad’s growth journey, ASBL sees the Union Budget 2026 as a clear signal that the city is being positioned as a strategic anchor in India’s next phase of connectivity-led development. The proposed high-speed rail network linking Hyderabad with Bengaluru, Chennai, and Pune is not merely about faster travel, it establishes Hyderabad as the central convergence point of India’s most powerful economic ecosystems.
Bengaluru may lead in IT, Chennai in manufacturing, and Pune in industrial-technology integration, but Hyderabad already integrates all three at scale and more. As India’s largest pharmaceutical hub, a rapidly expanding GCC powerhouse, and a growing centre for aerospace and advanced manufacturing, the city is uniquely placed to extract maximum economic value from this tri-city connectivity. This infrastructure will not distribute growth evenly, it will compound it where capability already exists, and Hyderabad stands to gain the most.
With over 355–360 Global Capability Centres employing more than 3,00,000 professionals, the addition of 35 Fortune 500 GCCs in 2025 alone, and sustained investment momentum across life sciences and technology, enhanced rail connectivity will further accelerate capital inflows, high-quality job creation, and GDP expansion for the city.
At a national level, the Budget’s emphasis on improved credit access, asset monetisation, and REIT-driven capital participation reinforces long-term confidence in real estate and infrastructure. As India’s real estate sector advances towards a $1 trillion valuation by 2030, cities like Hyderabad where economic depth, infrastructure readiness, and livability already converge, will lead the next cycle of urban and investment growth.”
Santosh Agarwal, CFO & Executive Director, Alpha Corp Development Limited
“The Union Budget 2026 is a definitive blueprint for a ‘New Urban India.’ By scaling public capital expenditure to ₹12.2 lakh crore, the government isn’t just building roads it’s building the future of our Tier-2 and Tier-3 cities. This ₹5,000 crore annual commitment to emerging urban hubs is a masterstroke for balanced growth. For the real estate sector, this translates to more than just connectivity; it enhances ‘liveability’ as a core asset, turning rising cities into primary economic engines. We are moving away from metro-centricity toward a more inclusive, high-growth urban reality.”
