Union Budget 2026-27: A Fresh Boost for Real Estate
Union Budget 2026-27 signals renewed optimism for India’s real estate sector. The focus is clear: affordable housing, infrastructure-led growth, and expansion across Tier 1 and Tier 2 cities—creating confidence for buyers, developers, and investors alike.
Housing remains a priority area. The Pradhan Mantri Awas Yojana (PMAY) Urban has been allocated Rs 18,625 crore, with an additional Rs 3,000 crore for PMAY Urban 2.0. This funding aims to speed up construction, complete stalled projects, and improve urban home ownership.
A new Infrastructure Risk Guarantee Fund has been announced. This fund provides partial credit guarantees to lenders, reducing risk during construction and early project phases. It encourages more bank and institutional funding for infrastructure and real estate projects.
The Budget sharpens its developmental lens on urban India. An Urban Challenge Fund of Rs 10,000 crore has been allocated for redevelopment, focusing on brownfield projects and innovative city infrastructure. This move provides strong tailwinds for real estate demand beyond just metros.
Key infrastructure announcements indirectly boost real estate. These include new Dedicated Freight Corridors (Dankuni–Surat), 20 new National Waterways linking industrial hubs, and a Coastal Cargo Promotion Scheme to improve logistics efficiency. Better connectivity often translates into higher land and property values.
The Budget proposes recycling Central Public Sector Enterprise (CPSE) real estate assets through dedicated Real Estate Investment Trusts (REITs). This unlocks idle land and buildings, improves capital efficiency, and creates new investment opportunities in income-generating real estate.
Urban livability takes centre stage with significant funding boosts. AMRUT receives Rs 8,000 crore for water supply, sewerage, and drainage, while Rs 7,350 crore is allocated for infrastructure maintenance. Reviving 200 legacy industrial clusters further strengthens the long-term appeal of urban real estate.
To support infrastructure execution, the capital expenditure has been raised to Rs 12.22 lakh crore. Tax breaks for non-residents supplying capital goods and deferred customs duty for trusted manufacturers are also introduced. Lower costs and smoother execution could mean faster project delivery and improved developer confidence.
Overall, the Union Budget 2026-27 is a significant step towards revitalizing the real estate sector, ensuring sustainable growth, and making homeownership more accessible for the common man.
