Union Budget 2026-27: Indirect Benefits for Real Estate Development Highlighted by CREDAI
Chennai, Feb 2, 2026 - The real estate body CREDAI Chennai today expressed its satisfaction with the Union Budget 2026-27, particularly the proposal to offer a tax holiday till 2047 to overseas cloud service companies who use data centers in India. This move has been seen as a positive step towards boosting the digital infrastructure and indirectly benefiting the real estate sector.
The Finance Ministry has taken several measures to create jobs and stimulate economic growth. These steps, while not directly targeting the real estate sector, are expected to have a ripple effect that could boost real estate development. According to Mr. Navin Kumar, MD of Navin's and Treasurer of CREDAI Chennai, the budget's focus on job creation and digital infrastructure will have indirect gains for the real estate industry.
However, Mr. Kumar also noted that the real estate sector has received relatively little in the way of direct advantages from the budget. 'While we welcome the indirect benefits, we are still hopeful for more direct incentives and policies that can further support the growth of the real estate sector,' he stated.
The real estate industry plays a crucial role in the Indian economy, contributing significantly to job creation and urban development. The sector has been facing challenges such as liquidity constraints and regulatory changes, and the industry is looking for more robust measures to address these issues.
The Union Budget 2026-27 has been praised for its focus on digital infrastructure and advanced manufacturing, which are key drivers of economic growth. Anurag Saxena, Managing Director of Star Infomatic, a company that produces high-tech Optical Fiber Splicing Machines and OTDR test equipment in India, commended the budget for reinforcing India's push towards a technology-driven and self-reliant economy. 'The enhanced focus on capital investment and advanced manufacturing will undoubtedly strengthen India's position in the global market,' Saxena said.
Meanwhile, Bajaj Housing Finance, a leading non-deposit-taking housing finance company (HFC), reported a significant increase in its Q3FY26 standalone net profit. The company's net profit rose by 21.32% to touch Rs 664.89 crore, driven by a 16.16% increase in revenue from operations to Rs 2,697.30 crore in Q3FY25. This positive financial performance underscores the resilience and growth potential of the housing finance sector, which is closely linked to the real estate market.
In conclusion, while the Union Budget 2026-27 has introduced measures that are expected to have indirect benefits for the real estate sector, the industry is eagerly awaiting more direct support to address its specific challenges and capitalize on the opportunities presented by the budget.
