Budet 2026: Bittersweet rollout for realty stakeholders; here's what real estate sector is saying

Union Budget 2026 drew mixed response from real estate sectors, while some said that it fell short of providing meaningful policy support for the affordable housing segment others rejoiced that it will help the sector to grow beyond saturated urban cores.Industry body CREDAI said that the absence of incentives for the affordable housing segment could further reduce its presence in the overall housing market. The apex realtor CREDAI represents almost 15,000 developers across the country. National President Shekhar Patel said that the Budget had failed to address long-standing concerns of the affordable housing segment. “Deeply disappointed that the Budget offers nothing concrete for affordable housing,” he said. Patel further warned that with the existing definition of affordable housing remaining unchanged, the segment’s share in total housing supply could slip from 18% to nearly 12%. He described this as a troubling indicator for India’s lower middle class and middle class. “This is a serious warning sign for India’s lower middle class and middle class. CREDAI believes that affordable housing is not a welfare scheme - it is economic infrastructure. It is a major driver of employment, consumption, and social stability,” he said.According to Patel, escalating construction costs and rising land prices, without matching policy intervention, are making affordable housing projects less viable for developers. “If affordable housing supply continues to weaken, the consequences are clear: higher rentals, longer commutes, and growth of informal housing,” he said.However, even while flagging concerns over affordable housing, CREDAI welcomed the government’s continued thrust on infrastructure development. The association said investments in highways, metro rail projects, logistics corridors, railways and urban infrastructure would strengthen connectivity and open up new growth corridors, offering long-term benefits to the real estate sector.Navin Dhanuka, director at ArisUnitern pointed that this Budget was "a clear shift from short-term cyclical support to building a durable growth backbone for Indian real estate. The emphasis on infrastructure, City Economic Regions and industrial corridors creates a virtuous loop between jobs, housing and urban expansion. By widening the geographical footprint of cities, the Budget enables housing growth beyond saturated urban cores into well-connected peripheral and Tier-2 markets."The expert added that enhancing capital markets through REITs and municipal bonds boosts long-term funding transparency. Collectively, these steps lower execution risk, reinforce buyer confidence, and foster a more resilient, end-user-focused real estate cycle.