Union Budget 2026: Boosting Housing through Infrastructure and Regional Growth
The Union Budget for the coming financial year may not have announced direct tax incentives for homebuyers, but real estate leaders believe its broader focus on infrastructure, capital markets, and regional development will shape housing affordability and buyer sentiment over the medium to long term. Industry experts say the impact will be gradual, with stronger fundamentals supporting stable pricing and sustained demand across residential segments.
Infrastructure and urban financing play a crucial role in supporting the housing ecosystem. According to Amit Jain, Chairman and Managing Director of Arkade Developers Limited, the Budget’s strength lies in reinforcing the overall housing ecosystem rather than offering short-term sops. He noted that higher capital expenditure, a continued push on urban infrastructure and transport, and improved municipal financing can significantly enhance city liveability while easing development bottlenecks. Measures such as asset monetisation through REITs and smoother processes for NRI transactions are also expected to improve transparency and liquidity, helping maintain stable pricing in urban residential markets.
Policy continuity and transparency are key factors that lift buyer confidence. Rohan Khatau, Director at CCI Projects Private Limited, said the Union Budget provides a solid foundation for the housing market through fiscal discipline and policy continuity. He emphasised that initiatives focused on asset monetisation, capital market development, and governance reforms will improve execution efficiency and transparency. These measures are likely to benefit the residential sector, particularly integrated townships and the luxury segment, where infrastructure quality is critical for sustained long-term value creation.
Connectivity reshapes location choices and lifestyle housing. Highlighting the importance of connectivity, Sandeep Ahuja, Global CEO of Atmosphere Living, said the Budget offers clarity and confidence rather than short-term incentives. He pointed out that investments in highways, rail networks, and airport expansion are changing how buyers assess locations. Well-connected cities with strong hospitality, leisure, and cultural tourism ecosystems are emerging as resilient housing markets. He added that the growing emphasis on REIT-backed and institutionally managed assets will further mature the market, especially for hospitality-driven and experiential living projects.
Tier-2 and Tier-3 cities are gaining momentum. From a regional growth perspective, Nikhil Madan, Managing Director of Mahima Group, said the Budget reinforces a steady growth narrative for Tier-2 and Tier-3 cities rather than offering short-term stimulus. Continued infrastructure spending and improved regional connectivity are expected to drive sustainable housing demand as job opportunities decentralise from metros. He believes these markets currently present one of the best opportunities for first-time homebuyers due to better liveability and manageable pricing.
Expanding on this theme, Mohit Goel, Managing Director of Omaxe Ltd, said the Union Budget 2026 underscores India’s growth momentum through a strong commitment to infrastructure and urban development, with public capital expenditure rising to Rs. 12.2 lakh crore in FY27. He highlighted the growing focus on Tier-2 and Tier-3 cities and temple towns such as Ayodhya and Vrindavan, which are evolving into organised urban centres. He also noted that large-scale mixed-use developments aligned with initiatives like Khelo India can play a meaningful role in building integrated urban and sporting ecosystems.
