Union Budget 2026-27 Propels Real Estate with ₹12.2 Lakh Crore Infra Boost: Industry Leaders React
The Union Budget 2026-27 has been welcomed by the real estate industry, particularly by organizations such as NAREDCO Maharashtra and CREDAI-MCHI. The budget's emphasis on infrastructure development, with a substantial capital expenditure of ₹12.2 lakh crore, is seen as a significant boost for the sector.
Prashant Sharma, President of NAREDCO Maharashtra, expressed his enthusiasm for the budget, stating, “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. 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. Sharma added, “Equally encouraging is the Government’s balanced approach towards fiscal consolidation while maintaining momentum in infrastructure investment. Measures such as the expansion of REITs, asset monetization by 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 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, echoed similar sentiments, describing the Union Budget 2026-27 as 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,” Nahar explained.
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.
The budget's comprehensive approach to infrastructure development, fiscal consolidation, and investor-friendly reforms has been widely appreciated. These measures are expected to not only boost the real estate sector but also contribute to overall economic growth and development in the country.
