With the Union Budget 2026 outlining several measures, we are sharing a perspective from the real estate sector on how these announcements could shape future development and demand patterns.
Manoj Gaur, CMD, Gaurs Group, says, “The budget, with its focus on infrastructure-led growth and financial stability along with an increase in public capex to Rs. 12.2 lakh crore carries forward the momentum witnessed in the real estate sector in the last few years. The continued thrust on infrastructure spending will also boost office, retail, and mixed-use project, while also strengthening the ecosystem for job creation and demand generation, consequently boosting residential development. The setting up of the Infrastructure Risk Guarantee Fund will also accelerate further expansion. The focus on infrastructure expansion and economic activity in tier 2 and tier 3 cities will accelerate urban growth and unlock new real estate markets beyond major metros.”
Sahil Agrawal, CEO, Nimbus Group, says, “The sector welcomes the Budget’s pragmatic approach, which combines strong capital expenditure with targeted policy measures to strengthen the infrastructure ecosystem. The increased capex provides visibility and confidence for developers and investors, particularly for long-gestation projects in metros and emerging Tier-2 and Tier-3 cities. The introduction of dedicated REITs for public sector assets is a positive step towards unlocking capital, enabling reinvestment into new infrastructure and creating a more efficient funding cycle. Complementing this, the Infrastructure Risk Guarantee Fund will mitigate execution and financing risks, making large-scale projects more viable and predictable. Together, these measures are likely to improve project delivery timelines, enhance asset quality, and support sustainable, infrastructure-driven growth across the sector.”
Uddhav Poddar, CMD, Bhumika Group, says, “The Budget’s continued thrust on infrastructure development, particularly across Tier-2 and Tier-3 cities, is a positive step for the real estate sector in the medium to long term. The announcement of seven high-speed rail corridors will act as powerful growth connectors, improving accessibility between major cities and emerging urban centres, and unlocking new residential and commercial micro-markets along these corridors. Equally important is the proposed scheme to enhance construction and infrastructure equipment, which can improve execution efficiency, reduce project timelines and bring greater predictability to delivery. With public capital expenditure raised to ₹12.2 lakh crore for FY27, the multiplier effect on roads, utilities and urban infrastructure is likely to accelerate planned developments beyond metros. As economic reforms also work towards easing financing conditions, we can expect increased developer confidence and institutional interest, translating into more organised, well-planned real estate growth across India’s next-generation cities.”
B.K. Malagi, Vice Chairman, Experion Developers says “Through Budget 2026, the government sends a strong signal of continuity and long-term commitment to infrastructure-led growth. Sustained public capital expenditure, combined with improved construction capabilities, enhances the viability of large-scale real estate developments across metros as well as Tier-2 and Tier-3 cities. Better infrastructure reduces risk, improves asset longevity, and makes emerging markets more attractive to institutional investors. As connectivity improves, we can expect stronger demand for residential projects, office parks, logistics hubs and mixed-use developments along new growth corridors. The broader reform push, including efforts to improve financing frameworks, further supports capital flow into real estate-linked infrastructure. Overall, this Budget lays the groundwork for a more mature, fiscally disciplined real estate market aligned with India’s evolving urbanisation story.”
Amit Modi, Director, County Group, says, “The government’s decision to raise capital expenditure to Rs.12.2 lakh crore reinforces its long-term commitment to infrastructure-led growth, which is critical for the real estate sector. A sustained infra push in Tier-2 and Tier-3 cities will improve connectivity, expand urban infrastructure, and unlock new residential markets beyond metros. As these cities become better integrated into regional growth corridors, we are likely to see more organised and planned real estate development. The introduction of the Infrastructure Risk Guarantee Fund further strengthens this ecosystem by improving funding confidence and reducing execution risk for long-gestation projects. Together, higher capex and risk mitigation measures can accelerate project timelines, improve asset quality, and encourage greater participation from developers and institutional investors.”
Ashwinder R. Singh, Chairman, CII Real Estate Committee; Vice Chairman, BCD Group; Advisor, NAR-India says, “The Union Budget takes a clear infrastructure-first approach, with higher public capex reinforcing long-term growth, urban connectivity, and job creation—factors that ultimately support real estate demand with a lag. For the sector itself, the Budget is stable but not catalytic. There are no direct tax incentives for homebuyers, no enhancement in home-loan deductions, and no fresh push for affordable housing definitions, which the industry was expecting. That said, the absence of disruptive changes provides policy continuity. Homebuyer sentiment will now be driven more by interest-rate direction and income confidence than Budget announcements. Overall, it is a macro-stability Budget rather than a real-estate stimulus one.”
Bhupindra Singh, COO, RISE Infraventures says, “The Budget marks a decisive push towards strengthening India’s next growth engines, the Tier-2 and Tier-3 cities, through sustained infrastructure investment. High-speed rail corridors will dramatically improve accessibility, making these cities more attractive for businesses looking for cost-efficient expansion. As connectivity improves, we are likely to see increased demand for new commercial hubs and stronger office and retail ecosystems developing beyond metros. The proposed scheme to enhance construction and infrastructure equipment will further support faster project execution, which is critical in emerging markets where delivery timelines shape buyer trust. With capital expenditure raised to Rs.12.2 lakh crore, infrastructure-led urbanisation is expected to gather pace. This creates a strong runway for organised real estate development, allowing smaller cities to evolve into self-sustaining urban centres rather than satellite extensions of metros.”
Dr. Gautam Kanodia, Founder, KREEVA and Kanodia Group, says “The Budget 2026 reinforces a clear understanding that real estate growth follows infrastructure, not the other way around. Continued public capital expenditure of Rs.12.2 lakh crore, coupled with new high-speed rail corridors, will deepen connectivity between metros and emerging cities, expanding the real estate opportunity beyond traditional urban cores. For metro markets, this improves peripheral viability and decongests central business districts, while Tier-2 and Tier-3 cities stand to benefit from increased residential absorption and organised commercial development. The focus on upgrading construction and infrastructure equipment is equally significant, as execution efficiency and timely delivery are now key determinants of buyer confidence. Over time, improved financing conditions and stronger infrastructure pipelines can encourage developers and institutional investors to look at long-term, planned developments rather than fragmented growth. This Budget sets the foundation for more balanced and sustainable urbanisation across India.”
Gurpal Singh Chawla, Managing Director, TREVOC Group, said, “The sustained emphasis on capital expenditure and urban infrastructure in this Budget reinforces the government’s commitment to long-term economic growth. The introduction of the City Economic Regions (CERs) framework, with dedicated funding for Tier-2 and Tier-3 cities, is a structured step towards improving connectivity, civic amenities and economic activity beyond metros. While immediate demand impact may be limited, this structural focus will gradually strengthen real estate fundamentals in emerging urban centres.”
Sauarb Saharan, Group Managing Director, HCBS Developments, says, “The real estate sector views this Budget as a steady and balanced push towards infrastructure-led growth rather than a headline-driven catalyst. The introduction of dedicated REITs and the Infrastructure Risk Guarantee Fund is particularly significant, as it improves funding confidence and reduces execution risk for large-scale projects. Coupled with the increased capital expenditure outlay of Rs. 12.2 lakh crore and continued focus on infrastructure development, these measures create a stable environment for the entire real estate sector. While, improved connectivity and infrastructure, particularly in Tier-2 and Tier-3 cities, are expected to unlock new residential and commercial opportunities. We foresee this Budget to continue establishing a solid foundation for gradual and inclusive growth across India’s realty sector.
Salil Kumar, Director-Marketing and Business Management, CRC Group, says, “Infrastructure continues to be the single biggest enabler of housing demand, and the Budget’s strong push in this direction is likely to reshape premium residential markets across metros and beyond. The sustained public capital expenditure of Rs.12.2 lakh crore will significantly improve connectivity, making peripheral and emerging micro-markets far more attractive for high-end homebuyers. In metro cities, this can accelerate the shift towards larger, luxury developments in well-connected outskirts, leading to a rise of aspirational, lifestyle-led housing. The focus on enhancing construction and infrastructure equipment also improves execution quality and delivery timelines. As infrastructure-led confidence improves and financing conditions ease, the real estate sector is likely to see deeper end-user demand rather than speculative interest, leading to more sustainable and well-planned premium residential growth across markets.”
Yash Miglani, MD, Migsun Group, says, “The Union Budget 2026 represents a strong thrust towards the development of Tier-2 and Tier-3 cities, which will be the source of the next wave of growth in the urban and commercial sectors. Improved connectivity, urban services and logistics will make these markets far more viable for organised commercial and mixed use developments. From Migsun Group’s perspective, the launch of the Infrastructure Risk Guarantee Fund is a welcome step, as it reduces funding risks and promotes private-sector investment in long gestation projects.”
Sandeep Chhillar, Founder & Chairman, Landmark Group, says, “While the sector had hoped for measures around tax rationalisation, enhanced buyer incentives and faster approval mechanisms to further improve project viability, the Budget 2026 has clearly doubled down on infrastructure as the primary growth lever for real estate. Improved mobility has a direct impact on how cities expand, commute patterns evolve, and new economic zones emerge, and the announcement of seven high-speed rail corridors is set to be transformative. For metro regions, faster inter-city travel can unlock peripheral residential markets and ease pressure on core urban areas, while enhanced connectivity will also attract businesses, talent and institutional capital. The focus on upgrading construction and infrastructure equipment is equally important, as execution efficiency and quality delivery are critical for large-scale developments. Backed by a capital expenditure outlay of Rs.12.2 lakh crore, these measures strengthen the ecosystem for long-term, infrastructure-led real estate growth rather than speculative demand.”
Pankaj Jain, Founder and CMD, SPJ Group, says “The Union Budget 2026 has shed significant focus on the infrastructure with a forward-looking approach. The Infrastructure Risk Guarantee Fund is a timely measure that will help ease financial constraints, particularly for projects linked to urban redevelopment and regional connectivity. When backed by the government’s increased capital expenditure push to Rs. 12.2 lakh crore, this added layer of financial assurance can significantly improve lender confidence and accelerate project execution. In metro cities, where large-scale infrastructure upgrades directly influence real estate viability, faster delivery and better coordination can enhance asset quality and unlock redevelopment potential. Importantly, assured funding for infrastructure strengthens the backbone on which real estate development depends, like roads, transit, utilities and public amenities. Over time, this will not only de-risk long-gestation projects but also support more sustainable and well-planned urban growth, reinforcing the long-term outlook for residential, commercial and mixed-use developments across key city markets.”
Rakesh Kaul, CEO and Managing Director, Ralith Realty says, “The establishment of the Infrastructure Risk Guarantee Fund is timely and will significantly enhance confidence in private infrastructure investment. By reducing risk perception among financiers and investors, this move can unlock greater capital flows into the sector and accelerate project implementation. It paves the way for faster execution and stronger private participation in urban infrastructure, transport-led development, and integrated mixed-use projects. Over time, such a framework will help create more predictable investment conditions, strengthen public–private collaboration, and provide a stable foundation for the long-term growth of both the real estate and infrastructure sectors.”
Umang Jindal, CEO, Homeland Group, says, “The Union Budget 2026’s sustained emphasis on infrastructure-led growth, particularly in Tier-2 and Tier-3 cities, is a decisive positive for the real estate sector. Increased capital outlay toward highways, multimodal connectivity and urban infrastructure will unlock new growth corridors and significantly enhance regional livability. This structured push supports planned urban expansion, stimulates genuine end-user housing demand and strengthens long-term confidence among both homebuyers and institutional investors.”
Preksha Singh, CEO of Agrasheel Infratech, said that supporting infrastructure and professional institutions in smaller cities through the budget will create new employment and business opportunities there. When transport, roads, and urban amenities are strengthened together, the real estate sector witnesses balanced and sustainable growth. Measures such as REITs (Real Estate Investment Trusts) will help developers overcome funding constraints, making Tier-2 and Tier-3 cities better options for both end-users and investors.
Ankit Kansal, Founder and MD of Axon Developers, says that “Budget 2026 sends a strong message for the real estate sector that infrastructure-led development is now a priority. With Rs. 12.2 lakh crore in government spending, high-speed rail corridors, and improved connectivity, new residential and commercial markets will open up in metro cities as well as Tier-2 and Tier-3 cities. This will increase demand for real estate projects, accelerate the completion of large-scale developments, and strengthen investor confidence. Initiatives like the Infrastructure Risk Guarantee Fund will encourage private investment and reduce risks in long-term projects. Overall, this budget is set to steer the sector towards sustainable, planned, and reliable growth.”
Mr. Sanchit Bhutani, Manging Director, Group 108, says, “The Union Budget’s continued focus on infrastructure and capital expenditure is a positive step for commercial real estate. Initiatives like the Infrastructure Risk Guarantee Fund will help improve funding confidence and make large office projects more viable. Better connectivity through high-speed rail corridors will also support the growth of Grade A office spaces across major business markets, creating a strong foundation for long-term demand.”
Viren Mehta, Founder & Director, ElitePro Infra, says, Recent policy initiatives outlined in the budget solidify infrastructure as the key driver of real estate growth in the next few years. Increased capital expenditure, focus on REITs for asset monetisation of CPSE lands, are positive factors that will add thrust to the real estate sector. Setting up the Infrastructure Risk Guarantee Fund and City Economic Regions with Rs. 5,000 crore allocation per region over five years, including temple towns as well as tier 2 and 3 cities, will ensure that the real estate horizon expands well beyond its core areas. This budget envisages long-term real estate growth that capitalises on India’s economic development.
Ashok Singh Jaunapuria, MD & CEO of SS Group, says that Budget 2026 has placed special emphasis on infrastructure, urban development, and the real estate sector. This will accelerate the pace of projects, strengthen investor confidence, and open up new opportunities across residential, commercial, and mixed-use segments. Overall, the budget will help propel the real estate sector towards sustainable growth and innovation.
Kushagr Ansal, Director, Ansal Housing, said that the emphasis laid on infrastructure development and asset monetisation in the Union Budget is a very positive signal for the real estate sector. Promotion of REITs (Real Estate Investment Trusts) will enable developers to raise capital from ready and income-generating assets, which will help accelerate new residential and commercial projects. Infrastructure expansion in Tier-2 and Tier-3 cities will strengthen real estate demand in these regions. The government’s focus on high-speed rail corridors, logistics, and green projects indicates that in the coming years, the real estate sector will not only witness growth but will also become more sustainable and increasingly reliable for investors.
