Real estate industry leaders have unanimously praised the Union Budget 2026-27, describing it as a forward-looking, infrastructure-driven blueprint that promises to accelerate growth across the sector. They emphasized that the government's heightened capital expenditure, innovative asset monetisation strategies, and robust risk-sharing frameworks are poised to enhance project execution, improve financing accessibility, and bolster long-term demand dynamics.
Infrastructure-Led Growth and Policy Continuity
Industry executives have lauded the government's decision to increase capital expenditure and introduce supportive financing tools, viewing it as a clear signal of policy continuity centered on infrastructure-driven expansion. This strategic focus is expected to generate significant spillover effects, benefiting housing markets, commercial real estate developments, and urban expansion initiatives nationwide.
Prakhar Agrawal, Director of Rama Group, highlighted that the rise in capital spending reinforces the government's commitment to infrastructure-led growth. "Elevating capital expenditure to Rs 12.2 lakh crore solidifies the policy thrust on infrastructure expansion," he remarked. Agrawal further noted that financing reforms will catalyze private sector involvement and stimulate demand in industrial real estate. "The Infrastructure Risk Guarantee Fund will bolster lender confidence and encourage private participation, while CPSE asset monetisation and freight corridor expansion will underpin commercial and industrial real estate growth," he added.
Urban Infrastructure and Homebuyer Benefits
Developers pointed out that infrastructure-linked expenditures will particularly advantage urban expansion corridors and emerging real estate clusters connected to logistics and manufacturing hubs. Vibhor Tyagi, Managing Director of VVIP Group, stated that the Budget's urban infrastructure initiatives could directly enhance the homebuyer experience. "For homebuyers, the emphasis on Tier 1 and Tier 2 city development translates into superior infrastructure, enhanced connectivity, and more reliable housing delivery," he explained.
Tyagi also emphasized that financing and monetisation measures will support smoother project execution and greater transparency. "The government's efforts to strengthen lender confidence and accelerate asset monetisation will ensure more efficient project completion and improved transparency. Over the medium term, these initiatives will lead to better liveability, expanded housing options, and stronger long-term value for homebuyers investing in well-planned urban locales," he elaborated.
Affordable Housing Concerns and Indirect Benefits
Despite the overall positive reception, some industry stakeholders expressed disappointment over the lack of targeted policy support for affordable housing. Anuj Puri, Chairman of ANAROCK Group, observed that while the Budget delivered broader growth triggers, it offered limited direct relief for the sector. "Union Budget 2026-27 concentrated on sustained economic growth, infrastructure development, MSMEs, tourism, high-speed rail corridors, and manufacturing. From a real estate standpoint, it provides various indirect benefits rather than immediate rescue measures, acting more as a growth catalyst," he commented.
Puri also highlighted the ongoing decline in affordable housing demand. "A major letdown for the real estate sector was the absence of significant announcements for affordable housing, which has been in free fall since the pandemic. ANAROCK data reveals that the sales share of affordable housing plummeted from over 38% in 2019 to 26% in 2022, and further to just around 18% in 2025," he added.
Structural Shifts and Premium Housing Impact
Sector participants underscored the multiplier effects of transport and logistics infrastructure on land values, urban expansion, and premium housing demand. Jitendra Yadav, Director of Roots Developers, described the Budget as marking a structural shift in infrastructure strategy. "Union Budget 2026-27 represents a master plan in transitioning India's real estate sector from asset creation to asset efficiency," he stated.
Yadav elaborated that the transit and manufacturing push will reshape premium housing geography. "The integration of seven high-speed rail corridors, such as Delhi-Varanasi, is not merely about moving people but expanding metropolitan boundaries like Delhi NCR. The introduction of the Infrastructure Risk Guarantee Fund and dedicated CPSE REITs provides institutional liquidity to the sector," he explained. He further noted that support for domestic manufacturing could compress project timelines. "Crucially, the push for domestic manufacturing of high-value equipment, from tunnel borers to firefighting systems, will drastically reduce project timelines. For the premium housing segment, these factors will elevate prime locations, transforming high-speed transit hubs into prestigious addresses for bespoke living. We are witnessing the dawn of a leaner, technologically advanced, and self-reliant Indian infrastructure," he added.
Long-Term Vision and Institutional Participation
Developers affirmed that increased infrastructure spending historically enhances project viability and accelerates private investment cycles. Vikas Garg, Joint Managing Director of Ganga Realty, noted that rising capex signals long-term policy commitment. "The sustained increase in capex spending clearly reflects the government's long-term vision and dedication to infrastructure-driven growth, which is vital for the real estate industry," he said.
Garg emphasized that financing access remains crucial for project execution. "Improved roads, railways, and overall infrastructure directly impact project feasibility and demand," he remarked. Industry leaders also highlighted that monetising public sector real estate assets could deepen institutional participation in the property market. RajniKant Mishra, Founder and Chairman of Amrawati Group, stated that risk-sharing measures will improve the project execution environment. "The Union Budget 2026 demonstrates a strong commitment to developing India's real estate and infrastructure sector. The Infrastructure Risk Guarantee Fund will be instrumental in de-risking projects during the construction phase," he asserted.
Mishra added that asset monetisation and regional infrastructure development will broaden growth opportunities. "The accelerated use of REITs for monetising CPSE real estate assets will enhance market depth," he concluded.
