The real estate sector has given a positive response to the Union Budget. Industry experts believe that increased spending on infrastructure, incentives for urban housing, and expectations of affordable home loans have boosted market confidence. According to developers, the budget’s emphasis on capital expenditure will accelerate construction activities, leading to an increase in both employment and demand. Furthermore, the environment for long-term investment in real estate is expected to strengthen. The sector is confident that home sales and the launch of new projects will pick up pace in the coming months.
Ashish Bhutani, CEO Bhutani Infra said,
“The Infrastructure Risk Guarantee Fund is a game-changer and a defining turning point for India’s infrastructure ecosystem. By absorbing construction-phase risk through calibrated credit support, the government has removed the biggest bottleneck that restrained private investment—unlocking cheaper capital, faster execution, stronger PPPs, and accelerated delivery of mega projects. This is also a direct tailwind for PPP-led destination developments like the Bayview–Bhutani Film City near Jewar, where de-risking the build phase can strengthen bankability and speed up on-ground delivery. Beyond infrastructure, the ripple effect is massive: re-rated regions, unlocked real estate, and a powerful new growth cycle for India.”
RajniKant Mishra, Founder and Chairman Amrawati Group said,
“The Union Budget 2026 demonstrates a clear commitment to strengthening India’s real estate and infrastructure backbone. The Infrastructure Risk Guarantee Fund will play a crucial role in de-risking projects during the construction phase, encouraging greater private investment. The accelerated use of REITs for monetizing CPSE real estate assets will enhance market depth and capital flow. Moreover, focused infrastructure development in Tier 2 and Tier 3 cities will unlock new growth corridors, making housing and commercial development more balanced and sustainable nationwide.”
Saransh Trehan, Managing Director, Trehan Group said,
“The Union Budget 2026 lays down a strong foundation for India’s real estate sector by significantly increasing infrastructure investment, with capital expenditure raised to ₹12.2 lakh crore for FY27,the highest ever which will drive connectivity and economic activity across urban and emerging markets. The emphasis on fast‑tracking REIT‑led asset recycling and support for Tier‑2 and Tier‑3 cities signals meaningful policy support to improve liquidity and investor confidence. Together with enhanced affordability measures and financing options, this Budget can catalyse demand and help the real estate industry sustainably contribute to job creation, urbanisation, and inclusive growth.”
Khalid Masood, Whole-Time Director, Shalimar Corp said,
“Union Budget 2026 outlines a progressive roadmap for strengthening the real estate sector. The introduction of the Infrastructure Risk Guarantee Fund will improve access to financing and mitigate project risks. Expanding REIT structures to include public sector assets will promote transparency and efficient capital deployment. The emphasis on Tier-2 and Tier-3 cities will catalyse infrastructure growth and generate long-term opportunities for real estate development nationwide.
Vikas Garg, Joint Managing Director, Ganga Realty, said,
“The proposed increase in public capital expenditure to ₹12.2 lakh crore sends a strong signal of continuity and confidence in India’s infrastructure-led growth strategy. For real estate sector, this sustained momentum improves project viability by enhancing connectivity, reducing logistics costs and catalysing private investment. The proposed Infrastructure Risk Guarantee Fund is a timely step that will strengthen lender confidence and de-risk the construction phase, enabling faster execution. Equally important is the push towards asset monetisation through REITs and the continued role of InvITs, which will unlock institutional capital and support balance-sheet recycling. The emphasis on developing city economic regions and strengthening infrastructure in Tier 2 and Tier 3 cities will drive more balanced urbanisation and create long-term opportunities across residential, commercial and mixed-use developments.”
“The Finance Minister’s focus on growth priorities for Tier 1 and Tier 2 cities is a welcome development for the real estate sector. Increased public investment in infrastructure such as roads, railways, and urban utilities will help unlock new opportunities for organised residential and mixed-use projects in emerging towns. For homebuyers, this translates into better connectivity, improved civic amenities, and more livable communities. With planned urban growth and affordable housing becoming a key focus, Tier 2 and Tier 3 cities are emerging as attractive alternatives to metro markets,” said Prakhar Agrawal, Director, Rama Group.
Vibhor Tyagi, MD, VVIP Group, said,
“The Union Budget 2026–27 sends a strong and reassuring signal to the real estate and infrastructure ecosystem. The increase in public capital expenditure to ₹12.2 lakh crore will sustain momentum across urban development, housing, and allied sectors. The proposed Infrastructure Risk Guarantee Fund is a timely intervention that will significantly improve lender confidence and crowd in private capital during the construction and development phase. Additionally, accelerating monetisation of CPSE real estate assets through REITs will unlock value, improve land efficiency, and support transparent growth. Together, these measures strengthen the foundation for long-term, sustainable real estate and infrastructure expansion in India.”
Dushyant Singh, Director, Orion One 32 said,
“The Union Budget 2026 offers a constructive roadmap for the real estate sector by reinforcing the government’s focus on infrastructure-led development and improved urban connectivity. Increased capital expenditure and policy support will play a vital role in driving housing demand, especially across emerging corridors and Tier-2 cities. Measures aimed at strengthening affordability and easing access to finance are timely, as both homebuyers and developers navigate cost pressures. For the sector, the Budget signals long-term intent towards sustainable urban growth, enhanced investor confidence, and balanced development, enabling real estate to continue contributing meaningfully to economic growth, employment generation, and the evolving needs of India’s urban population.”
HS Kandhari, Executive Director, Harmony Infra Ventures said,
“The Budget sends a clear message that infrastructure remains central to India’s growth strategy. The increase in capital expenditure to ₹12.2 lakh crore provides much-needed continuity and confidence for developers and contractors planning long-term projects. What stands out is the proposed Infrastructure Risk Guarantee Fund. Addressing risk at the construction and development stage is crucial, especially for large projects, and this move should improve lender confidence and private participation. The focus on Tier 2 and Tier 3 cities and the push to strengthen construction equipment and capabilities also signal a more balanced and execution-focused approach. Overall, this Budget creates a more stable and enabling environment for infrastructure delivery across the country.”
Mohit Mittal, CEO – MORES said,
“The Budget continues to build on the government’s effort to unlock value from infrastructure and real estate assets. The proposal to accelerate CPSE asset monetisation through dedicated REITs is a practical step that can bring greater transparency and institutional participation into the real estate market.
While there are no major changes announced for InvITs, the continued policy emphasis reinforces their importance as long-term capital vehicles. Combined with higher public spending on infrastructure, this improves visibility for investors looking at real assets in India. Better connectivity and regional infrastructure development will naturally influence how and where real estate demand emerges. From an investment perspective, the direction is steady and encouraging.
Vishal Datt Wadhwa, Founder & CEO, CoWorkZen said,
“The Budget’s strong focus on infrastructure and the development of Tier 2 and Tier 3 cities is encouraging for the managed office and coworking sector. As connectivity improves and emerging cities become more business-friendly, we’re seeing growing interest from startups as well as larger companies exploring expansion beyond the metros.
The idea of developing city economic regions also supports the broader shift toward decentralised growth. This aligns well with how organisations are rethinking their office strategies today, including hub-and-spoke models and distributed teams. With more momentum expected from MSMEs and new-age sectors, demand for flexible, professionally managed workspaces in these cities is likely to grow steadily in the coming years.”
