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Union Budget 2026 maintains a clear focus on infrastructure-led growth, policy stability and financial reforms, with direct implications for the real estate sector. Industry leaders highlight sustained public capex, SWAMIH Fund 2, improved connectivity, asset monetisation through REITs and predictable taxation as key positives. While there are no direct homebuyer incentives, measures supporting execution certainty, capital access, tourism development and MSME credit are expected to support steady demand across residential, commercial and leisure real estate, particularly in Tier II and Tier III cities.
The Union Budget 2026 outlines the government's approach towards sustained economic growth through infrastructure investment, urban development and financial system reforms. With public capital expenditure raised to INR 12.2 lakh crore in FY27, a 9 percent increase over the previous year, the Budget maintains its focus on long-term execution rather than short-term stimulus. Measures related to housing completion, transport connectivity, asset monetisation and credit flow have direct implications for the real estate sector across residential, commercial and tourism-linked segments. Advertisement
Aniruddha Mehta, Chairman and Managing Director of Umiya Buildcon Ltd, said the Budget reinforces the importance of stability and predictability for sustainable real estate growth. He noted that continued infrastructure spending, streamlined approvals and policy continuity are expected to support faster project execution and improve cash flow visibility for developers. Mehta highlighted the renewed focus on affordable housing and infrastructure-led development across Tier I and Tier II cities, which he said would encourage more balanced urban expansion. He also pointed to the Infrastructure Risk Guarantee Fund and asset monetisation initiatives as steps that could ease financing challenges. According to him, the launch of SWAMIH Fund 2 with INR 15,000 crore to complete one lakh stalled homes is a significant move to resolve legacy stress and restore project viability, while ongoing tax benefits for homeowners could help sustain demand.
Manish Jain, President of CREDAI Pune, described the Budget as a strong endorsement of India's urban growth agenda. He said the emphasis on infrastructure investment, City Economic Regions, high-speed rail connectivity and higher public capital expenditure is likely to translate into increased demand for housing, commercial spaces and integrated townships, especially in Tier II and Tier III cities. Jain highlighted that proposed high-speed rail corridors, including the Mumbai-Pune route, would improve regional access and support real estate development along emerging corridors. He added that CPSE asset monetisation through REITs and the Infrastructure Risk Guarantee Fund would strengthen capital flows and execution confidence, even though there were no direct incentives for homebuyers.
Adhil Shetty, CEO of BankBazaar, said the Budget strengthens India's formal credit system through targeted measures. He highlighted the proposed INR 10,000 crore SME Growth Fund as an important step in addressing the equity gap faced by MSMEs, which employ over 11 crore people and contribute nearly 30 percent of GDP. Shetty also pointed to the continued focus on TReDS and invoice discounting to ease liquidity stress and reduce dependence on informal borrowing. He said the proposed high-level committee on banking under the Viksit Bharat framework signals a comprehensive review of financial stability, inclusion and technology adoption. For households, he noted that the reduction in TCS under the Liberalised Remittance Scheme to 2 percent would ease cash flow pressure for overseas education, travel and medical expenses.
Sunil Sisodiya, Founder and CEO of Neworld Developers, said the Budget provides a boost to holiday homes and tourism-linked real estate. He noted that higher infrastructure spending across transport networks and eco-tourism corridors would improve connectivity to leisure destinations. Sisodiya said these measures are expected to support demand for resorts and second homes in key tourism markets such as Goa. He also highlighted investments in hospitality education, skill development and digital tourism platforms as steps that would strengthen the sector's long-term outlook.
Pradeep Aggarwal, Founder and Chairman of Signature Global (India) Ltd, said the Budget offers a credible roadmap for the next phase of growth, driven by infrastructure, urban development and financial reforms. He said sustained public capex, the Infrastructure Risk Guarantee Fund, high-speed rail corridors and expansion of national waterways would improve connectivity and efficiency across the real estate ecosystem. Aggarwal also highlighted the allocation for City Economic Regions and the continued focus on Tier II and Tier III cities as key enablers of planned urbanisation and housing demand. On the consumption side, he noted that income tax reforms and lower TCS rates would improve disposable incomes and indirectly support housing demand.
Vimal Nadar, National Director and Head of Research at Colliers India, said the Budget's emphasis on tourism development through infrastructure creation and skill training is likely to have a positive spillover effect on real estate. He pointed out that segments such as hotels, guest houses, second homes and primary housing stand to benefit from increased tourism activity and improved destination infrastructure.
Avneesh Sood, Director at Eros Group, said the Budget makes it clear that real estate growth will be driven by infrastructure investment, fiscal discipline and predictable taxation rather than short-term incentives. He noted that sustaining public capex at INR 12.2 lakh crore while maintaining fiscal discipline sends a strong signal of continuity. Sood said the focus on transport corridors, City Economic Regions and industrial expansion would push housing and rental demand beyond top metros. He also highlighted tax stability and simplified compliance as positive factors for homebuyers and developers planning long-term investments.
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