In the Union Budget 2026, the Finance Minister Nirmala Sitharaman made some promising announcements for the real estate sector. These announcements are likely to benefit private investors, smaller cities, and home buyers in many ways. We spoke to some industry experts on how this budget is going to impact the real estate prices, and here is a list of reactions that we got.
According to Kanwar Pal Singh, Founder, Investor Home Solutions, "The budget provides an all-encompassing policy framework that delivers continuous support for urban infrastructure development, that enables real estate construction. The establishment of City Economic Regions, combined with the state's access to 1.5 lakh crore in 50-year interest-free loan funds for capital projects and change, provides Cities with a system that enables them to build infrastructure that attracts real estate investment. The Infrastructure Risk Guarantee Fund, together with asset monetization methods such as REITs, demonstrates an innovative financial solution that the sector has developed for maturing financing mechanisms. The combined impact of these policies enables better capital access for projects while enhancing their feasibility and establishing conditions that support long-term growth in residential, commercial, and mixed-use real estate development."
"Budget 2026 improves the structure for real estate development by aligning it with urban development and infrastructure planning. The emphasis on City Economic Regions will ensure the creation of new development centers and promote more balanced development in areas outside the large metros. One of the most significant aspects of Budget 2026 is the provision of ₹1.5 lakh crore for 50-year interest-free loans to states for capital expenditure and reform-linked schemes, which will ensure the faster development of infrastructure in cities. Other significant aspects include the Infrastructure Risk Guarantee Fund and monetization of assets through REITs, which will further ensure the stability of funding and lenders’ confidence," says Abhishek Raj, Founder and CEO, Jenika Ventures.
According to Prakhar Agrawal, Director, Rama Group, “Raising capital expenditure to ₹12.2 lakh crore reinforces the government’s commitment to infrastructure-led growth. The Infrastructure Risk Guarantee Fund will strengthen lender confidence and encourage private participation, while CPSE asset monetisation and freight corridor expansion will support commercial and industrial real estate growth.”
The Union Budget 2026 has given a material dimension to the growth potential of Tier 2 and Tier 3 cities. The 5,000 Cr yearly allocation for urban infrastructure development signals the intent from the government to transform these cities as self sustaining growth centres. Improved connectivity, employment opportunities and ease of living have emerged as the key factors contributing to the rising housing demand in these regions. We also appreciate the proposal of the Infrastructure Risk Guarantee Fund. This can be a major move towards enhancing the confidence of the lenders during the construction stage which in turn, would lead to smoother execution of the projects,says Anil Godara, Founder and Managing Director , J Estates.
“The Union Budget 2026 clearly recognises construction and infrastructure as a critical enabler of India’s growth and execution capacity. The increase in capital expenditure to ₹12.2 lakh crore reinforces long-term momentum for infrastructure development, while the announcement of a dedicated scheme for enhancement of construction and infrastructure equipment signals a strong policy focus on productivity, safety, and technological capability at project sites. This approach will support faster project execution, reduce import dependence, and strengthen domestic manufacturing of advanced construction equipment. For Indian manufacturers like us, it provides a stable and enabling framework to scale innovation and support India’s infrastructure ambitions ", says Sorab Agarwal, Executive Director, ACE
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…
According to Yash Miglani, MD, Migsun Group, "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."
Sheeshram Yadav, Managing Director, Yugen Infra, says, "Budget 2026 is a big positive signal for the future growth story of India. The focus on public capital expenditure, from ₹2 lakh crore in 2014-15 to a target of ₹12.2 lakh crore in FY 2026-27, is a huge positive signal that the government is committed to keeping the development of infrastructure at the top of the economic agenda. The introduction of the Infrastructure Risk Guarantee seems to be a very encouraging initiative, as it has been a long-standing concern in the development and construction phase."
Equally important is the focus on monetizing assets by identifying specific REITs for CPSE real estate, which will help in the better recycling of capital. The special focus on Tier-2 and Tier-3 cities, temple towns, and City Economic Regions shows a balanced approach towards urbanization, which will create new engines of economic growth in non-metro cities. Budget 2026 offers a pragmatic and future-proof platform for sustainable infrastructure development, urbanization, and PPP.
Clearly there is a lot of enthusiasm towards the new announcements, particularly in relation to Tier 1 and Tier 2 city development, the Infrastructure Risk Guarantee Fund, and the increase in capital expenditure to ₹12.2 lakh. Hopefully all these measures together may lead to a real estate boom and eventually lead to the availability of more options and a good pricing structure.
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