Union Budget 2026-27: ₹12.2 Lakh Crore Infra Push Energizes Real Estate Sector
The Union Budget 2026-27, presented by the government, has been hailed as a transformative step for the real estate sector, particularly with a massive infrastructural push of ₹12.2 lakh crore. This significant investment is expected to catalyze growth, especially in Tier II and Tier III cities, which are witnessing rising urbanization and increasing commercial activity.
Prashant Sharma, President of NAREDCO Maharashtra, stated, “The Union Budget 2026-27 strongly reinforces the government’s long-term commitment to inclusive and sustainable growth, with infrastructure-led development emerging as a central pillar. The significant increase in capital expenditure to ₹12.2 lakh crore, coupled with continued focus on Tier II and Tier III cities, will act as a powerful demand catalyst for real estate beyond metros.”
Sharma further emphasized, “These emerging growth centres are witnessing rising urbanization, aspirational housing demand, and increasing commercial activity, making them the next engines of India’s real estate expansion. For Maharashtra in particular, improved connectivity, urban infrastructure funding, and the emphasis on growth corridors will significantly enhance housing demand and accelerate redevelopment in urban centres.”
The government’s balanced approach towards fiscal consolidation while maintaining momentum in infrastructure investment is also commendable. Measures such as the expansion of Real Estate Investment Trusts (REITs), asset monetization by Central Public Sector Enterprises (CPSEs), and reforms aimed at improving ease of doing business will strengthen investor confidence and attract long-term capital into the real estate sector. Simplification of tax processes, especially for Non-Resident Indians (NRIs), and a more investor-friendly framework for foreign capital will further boost confidence. We believe this Budget lays a strong foundation for inclusive urban growth and urges state governments to align policies to ensure faster project execution and improved housing supply.
Sukhraj Nahar, President of CREDAI-MCHI, added, “The Union Budget 2026-27 is a masterstroke in 'de-risking' the Indian infrastructure and real estate landscape. By increasing the capital expenditure to a record ₹12.2 lakh crore and introducing the Infrastructure Risk Guarantee Fund, the government has directly addressed the industry's long-standing concern regarding credit flow during the critical construction phase. This public credit guarantee will bridge the trust gap between lenders and developers, accelerating project completions across the board.”
Furthermore, the move to monetize CPSE land banks through dedicated REITs and the development of City Economic Regions with a ₹5,000 crore outlay per region will act as a massive catalyst for both commercial and residential demand. From the new Dankuni-Surat Freight Corridor to the focus on Tier-2 and Tier-3 urban hubs, this budget provides the structural 'momentum' needed to sustain growth and ensure that the real estate sector remains the bedrock of a $5 trillion economy.
In summary, the Union Budget 2026-27 is poised to drive significant positive changes in the real estate sector, fostering inclusive growth and enhancing the quality of life in both urban and semi-urban areas. The robust infrastructure push and supportive policy measures are expected to attract substantial investments and drive demand, making this budget a pivotal moment for the real estate industry in India.
