Union Budget 2026–27 lays out a robust roadmap for India’s economic and real estate growth, with an unprecedented focus on infrastructure, tier-II and tier-III cities, technology-driven sectors, and sustainable urban development. Experts from leading real estate, financial, and investment institutions highlight how the Budget’s measures—ranging from enhanced capital expenditure and REIT-led asset monetisation to tax incentives for data centres and life sciences clusters—are set to unlock long-term investment opportunities, improve liquidity, and strengthen India’s urban and economic ecosystem.

From promoting emerging sectors such as AI, healthcare, and semiconductors to reinforcing connectivity and affordability across residential and commercial real estate, the Budget reflects a strategic balance between near-term relief and long-term growth vision.

Anshuman Magazine, Chairman & CEO – India, South-East Asia, Middle East & Africa, CBRE: “The Budget strongly reflects the Government’s ambition to accelerate and sustain economic growth through manufacturing and improving effectiveness. The increase in public capital expenditure to INR 12.2 lakh crore reinforces a decisive push towards future-ready infrastructure across India, with a clear emphasis on Tier II and Tier III cities.

The decision to include assets of Central Public Sector Enterprises (CPSEs) into the Real Estate Investment Trust (REIT) structure is a significant shift and is likely to have a multi-layered impact on the market from deepening the market, as these entities have large assets, to increasing the participation of institutional investors, including mutual funds.

The tax holiday for foreign cloud companies setting up data centres here till 2047 is likely to remove the single biggest friction point for global hyperscalers entering India. This is likely to act as a massive catalyst for the asset class. We expect global capital inflows into the sector to increase substantially after this announcement.

There are some other sector-led initiatives that are expected to influence real estate sector. The INR 10,000 crore Biopharma SHAKTI programme, expansion of NIPER institutions, and the rollout of 1,000+ clinical trial sites will accelerate the development of life sciences clusters, driving demand for R&D, laboratory, and manufacturing infrastructure.

In parallel, the Budget’s emphasis on AI, digital platforms, and advanced manufacturing supports continued investment in industrial parks, and technology-led real estate, particularly in emerging urban markets.

The overall direction is clearly supportive of long-term economic and urban development. However, there was more expected on the affordable housing given its importance for inclusive growth.”

Anshul Jain, Chief Executive – India, SEA, MEA & APAC Office and Retail, Cushman & Wakefield: “The Union Budget reflects a calibrated approach. It has tried to balance long-term measures for emerging sectors with targeted support for industries navigating a more volatile global trade environment. The emphasis on data centres, healthcare, tourism, education, semiconductors and critical minerals signals the government’s intent to build future-facing economic engines, while near-term measures such as customs duty rationalisation and greater flexibility for SEZ occupiers provide immediate relief to manufacturing and export-led businesses.

The Budget also places growing emphasis on the development of tier-II and III cities, creating an additional growth lever for the real estate sector alongside tier 1 markets, which continue to anchor activity across asset classes. As capacity tightens in select Tier I locations, occupiers, particularly GCCs and start-ups, are evaluating Tier II cities, supported by access to emerging talent pools, relatively lower real estate costs, improving infrastructure and a better quality-of-life proposition.

Hospitality is another sector that could see a boost with the proposed development of new tourism clusters centered on spiritual, cultural, heritage and medical tourism. With domestic and international tourist inflows already on a strong footing, efforts to develop new tourism circuits could unlock significant opportunities across the hospitality and allied real estate segments.

The proposal to pool government real estate and land holdings through the use of instruments such as REITs, is also an interesting one to look forward to. There are large tracts of land and real estate held in prime locations across metropolitan cities which could get potentially unlocked through this route.

The announcement of tax holidays and safe-harbour provisions for data centres is particularly significant for India, which remains a structurally under-penetrated market relative to its digital consumption. While these measures will incentivise global hyperscalers and accelerate capacity build-out, sustained growth will depend on parallel progress in power availability, water security and infrastructure readiness. Taken together, these measures reflect a pragmatic approach that supports the real estate sector by strengthening the structural drivers that underpin long-term demand and capital formation.”

Badal Yagnik, CEO & Managing Director at Colliers India: “The budget has taken a measured approach to balance India’s long-term growth ambition and inclusivity across regions & economic segments as well. The overarching growth theme is evident in the form of focus on manufacturing scale up in strategic sectors, rejuvenation of legacy industrial sectors, creation of champion MSMEs, infrastructure push, long-term energy security & stability and development of city economic regions. Indian real estate particularly stands to benefit from the targeted emphasis on manufacturing capability enhancement and infrastructure augmentation in the form of Dedicated Freight Corridors, high speed rail corridors, nationalization of inland waterways, development of urban clusters etc.

Driven by the budgetary focus, we expect traction in real estate requirement from textile, healthcare, semi-conductor & rare earth segments and firms within the Animation, Visual Effects, Gaming, and Comics (AVGC) and Artificial Intelligence (AI) domain.  Interestingly, the proposed tax holiday for foreign cloud service providers will significantly accelerate data centre growth by attracting global hyperscalers and deepen long term investment in the segment, positioning India as a preferred hub for digital infrastructure and cloud based service economy. Furthermore, there is a clear focus on identifying and leveraging the growth drivers of Tier II & III cities including temple towns. Meanwhile, the pertinent focus on tourism, training, skill development, creation of infrastructure will have a positive domino effect on the real estate sector in the areas of hotels, guest houses, second homes and primary housing as well. Overall, the budget has emphasized strengthening competitiveness and augmenting manufacturing capabilities by integrating into the global value chain. In fact, India looks poised to move beyond capacity creation into capability building, which is likely to form the blueprint of sustained long-term growth, especially in these times of global uncertainties.”

Tanuj Shori, Founder and CEO, Square Yards: “The Budget’s continued focus on capital market deepening and asset recycling, including monetisation of public sector real estate through REIT structures, reinforces the role of REITs and InvITs as mainstream investment vehicles. We are likely to see a steady rise in new REIT and InvIT listings over the medium term, covering office assets, retail centres, logistics parks, data centres and infrastructure portfolios. For retail investors, this expands access to high-quality, income-generating real assets that were earlier largely available only to institutions. They offer the dual benefit of regular yield visibility and participation in long-term asset appreciation, while providing liquidity through listed markets. Over time, these investment engines in the market will also improve transparency, valuation discipline and governance across the real estate ecosystem, strengthening overall investor confidence.”

Shrinivas Rao, FRICS, CEO, Vestian: “The Union Budget 2026 outlines a clear roadmap towards achieving Viksit Bharat by 2047, with a strong emphasis on accelerating the digital economy, upskilling the future workforce, strengthening infrastructure, promoting tier-2 and tier-3 cities, and reforms to ease financing from foreign investors. The budget aims to strengthen the growth ecosystem of the real estate sector by enhancing connectivity between emerging and established urban centers and by promoting the development of economic regions. These measures are expected to attract GCCs to tier-2 and tier-3 cities, enabling them to leverage cost efficiencies and long-term growth opportunities. Additionally, the data centre industry is poised for heightened traction following the announcement of a tax holiday till 2047. The budget also charts a clear growth trajectory for the hospitality sector through focused initiatives aimed at boosting tourism.”

Manish Agarwal, Managing Director, Satya Group, President, CREDAI Haryana: “In the lead-up to Union Budget 2026, the real estate sector was looking for a combination of demand-side support, tax incentives, and reforms to ease project delivery and financing. While a few of these did not receive immediate focus, the Budget’s clear commitment to reform anchored in an infrastructure-led growth strategy, emphasis on Tier-1 and Tier-2 markets, and a reforms-over-rhetoric approach—offers a strong foundation for sustainable sector growth.

At the same time, the industry continues to look forward to sharper policy support for affordable housing, particularly through rationalised transaction costs, improved access to finance, and measures that enhance viability for developers while preserving affordability for end users. Strengthening affordable housing remains critical for maintaining broad-based demand and urban inclusivity.

The proposal to monetise and recycle CPSE-owned real estate reflects a pragmatic reform mindset by addressing the long-standing scarcity of well-located urban land. When aligned with investments in future-ready infrastructure and connectivity, these measures can ease supply constraints, encourage planned densification, and attract institutional capital. Over time, this can enable more balanced, efficient, and economically productive urban development across India, while positioning emerging cities as sustainable engines of real estate demand.”

Ashka Pandit, Director, Sri Lotus Developers and Realty Limited: “Budget 2026 marks a pivotal moment for Indian real estate. The Rs 12.2 lakh crore capital expenditure allocation and Infrastructure Risk Guarantee Fund directly address the sector’s financing challenges, unlocking greater liquidity and execution efficiency for developers. The sustained focus on Tier-2 and Tier-3 cities opens tremendous opportunities- these emerging markets represent India’s next real estate frontier with immense potential for residential and commercial developments as infrastructure connectivity transforms them into prime investment destinations. The construction equipment enhancement scheme further elevates execution standards. Notably, promoter buybacks will now attract dual taxation- both capital gains tax and buyback tax. Overall, this budget architects a robust ecosystem positioning real estate as a cornerstone of India’s economic growth.”

Sudhir Pai, CEO, Magicbricks: “The Budget’s continued thrust on infrastructure development in Tier 2 and Tier 3 cities is a positive signal for the real-estate market beyond the top metros. Investments in regional connectivity—through high-speed rail corridors, freight networks and improved waterways—are expected to improve access to emerging cities, support local employment, and gradually deepen housing demand in these markets. The parallel focus on tourism-led infrastructure, spanning heritage, eco and adventure circuits, is also likely to create sustained demand for hospitality and lifestyle-linked real estate in several non-metro locations. Importantly, measures aimed at easing foreign investment and strengthening India’s global economic positioning should further reinforce confidence among non-resident Indians, who continue to view Indian real estate as a long-term asset backed by infrastructure-led growth.”

Adhil Shetty, CEO, BankBazaar: “Union Budget 2026–27 strengthens the foundations of India’s formal credit and financial system through targeted, data-backed measures. The proposed ₹10,000 crore SME Growth Fund is a key intervention. It addresses the long-standing equity and growth capital gap faced by scaling MSMEs, which employ over 11 crore people and contribute nearly 30 percent of India’s GDP. Better access to patient capital can help viable enterprises move from survival mode to sustainable expansion.

The continued focus on strengthening the TReDS and invoice discounting framework directly tackles MSME liquidity stress. Faster receivables financing improves cash flows, reduces dependence on informal borrowing, and lowers working capital costs. This is critical for small businesses operating on thin margins. Within banking and NBFCs, the proposal to constitute a high-level committee on banking for Viksit Bharat signals a comprehensive review of the sector. The focus on financial stability, inclusion, consumer protection, and technology adoption is timely. The government’s clearer articulation of the role of NBFCs, including defined credit targets and technology-led efficiency, reinforces their importance in last-mile credit delivery.  For households, the reduction in TCS under the Liberalised Remittance Scheme to 2 percent from 5 percent for foreign travel, education, and medical expenses will ease upfront cash-flow pressure. It improves affordability for overseas education and healthcare while reducing short-term liquidity strain. Overall, Budget 2026–27 takes a measured approach. By combining capital support, digital and AI-led infrastructure, and regulatory reform, it aims to deepen formal credit penetration, improve liquidity, and strengthen trust across India’s financial system.”

Ashish Narain Agarwal, Founder & MD of PropertyPistol: “Union Budget 2026 reinforces real estate as a core investment pillar. The simplification of NRI property sale transactions is a structural reform that improves liquidity and accelerates cross-border capital inflows. A dedicated ₹5,000-crore push for Tier-2 and Tier-3 cities, supported by the newly introduced Risk Guarantee Fund, materially reduces execution risk and enhances investor confidence. With infrastructure capital expenditure rising to ₹12.2 lakh crore, city-economic regions are set to expand beyond metros, driving housing demand through improved connectivity, employment, and urban infrastructure. For real estate investors, this Budget shifts the narrative from speculative growth to policy-backed, data-driven returns. Emerging cities now offer a compelling mix of affordability, infrastructure momentum, and long-term appreciation making this the right cycle to invest with conviction.”

Akshay Taneja, CEO, TDI Infrastructure: “Metro cities are witnessing saturation, with residential prices rising 25–30% over the last three years, alongside land scarcity, stretched infrastructure and longer approval cycles. In contrast, Tier-2 and Tier-3 cities now account for 44% of residential land acquisitions and are driving demand beyond metros. Housing sales across 60 cities crossed 6.8 lakh units in 2024, up 23% YoY, reflecting stronger affordability and connectivity. Digitalisation incentives and sustained infra spending will be critical for enabling safe, smart and scalable urban ecosystems across emerging city economic regions. Increase in infrastructure capex from ₹11.2 lakh crore to ₹12.2 lakh crore for FY27, combined with ₹500 crore in government support and the Infrastructure Risk Guarantee Fund, will materially improve project viability and private capital participation. However, it lays out a decisive blueprint for India’s next phase of urban growth.”

Sunil Pandita, CDO, Nemetschek Group: “Budget 2026–27 sends a strong and timely signal towards building future-ready infrastructure for India. The government’s continued focus on public capital expenditure of ₹12.2 lakh crore, development of Tier 2 and Tier 3 cities, expansion of dedicated freight corridors, inland waterways, and creation of a robust infrastructure risk guarantee framework will significantly strengthen India’s infrastructure backbone. Equally encouraging is the emphasis on emerging technologies, particularly artificial intelligence, with large-scale capacity-building initiatives and national technology missions. As infrastructure networks expand in scale and complexity, digital engineering, AI-driven design, geospatial intelligence, and predictive modeling will be critical to enhancing safety, quality, resilience, and lifecycle performance of assets across highways, waterways, urban infrastructure, and logistics corridors. We see this Budget as an opportunity to accelerate the adoption of open, interoperable digital technologies across the construction and infrastructure ecosystem. By embedding digital-first design, planning, execution, and maintenance practices, India can deliver infrastructure that is not only faster and more cost-efficient, but also sustainable and resilient for decades to come. We look forward to supporting India’s infrastructure vision through technology-led innovation and global best practices.”

Vishal Raheja, Founder & MD, InvestoXpert Advisors: “Union Budget 2026–27 articulates a more integrated real estate vision, where metro markets continue to anchor institutional stability while temple towns and pilgrimage corridors evolve as structured growth extensions. By scaling public capital expenditure to ₹12.2 lakh crore, the government is reinforcing infrastructure intensity across established cities and culturally significant destinations alike. Improved connectivity around temple towns will enable a transition from fragmented, seasonal development to planned hospitality districts, mixed-use assets, and organised residential catchments, while metros benefit from deeper liquidity through CPSE asset monetisation via dedicated REITs. The introduction of the Infrastructure Risk Guarantee Fund reflects a mature policy approach that recognises execution risk as a core constraint to quality development. Together, these measures position real estate as a long-term enabler of economic continuity, urban depth, and sustainable value creation across markets.”

Saransh Trehan, Managing Director, Trehan Group: “Union Budget 2026 lays down a strong foundation for India’s real estate sector by significantly increasing infrastructure investment, with capital expenditure raised to ₹12.2 lakh crore for FY27,the highest ever which will drive connectivity and economic activity across urban and emerging markets. The emphasis on fast‑tracking REIT‑led asset recycling and support for Tier‑2 and Tier‑3 cities signals meaningful policy support to improve liquidity and investor confidence. Together with enhanced affordability measures and financing options, this Budget can catalyse demand and help the real estate industry sustainably contribute to job creation, urbanisation, and inclusive growth.”

Sunil Sisodiya, Founder & CEO, Neworld Developers: “Budget 2026 is a major boost for India’s holiday home and tourism-linked real estate sector. With ₹12.2 lakh crore allocated to infrastructure, including high-speed rail, waterways, and eco-tourism corridors, connectivity to key leisure destinations will improve significantly. In Goa, a prime leisure and lifestyle destination, these initiatives are expected to enhance demand for holiday homes and resorts. Programs such as the National Institute of Hospitality, B12 hospitality classes, tourism courses with IIM collaboration, and the National Destination Digital Knowledge Grid will upskill over 10,000 professionals, integrating digital tools into hospitality education. Coupled with focus on India’s cultural, spiritual, and heritage sites, these measures will strengthen demand for lifestyle-driven real estate and reinforce India’s leadership in tourism and hospitality.”

Kalyan Chakrabarti, CEO, Emaar India: “We welcome the Union Budget 2026-27, which continues to take strong steps towards the vision of Viksit Bharat by focusing on sustainable economic growth, infrastructure expansion, and inclusive development. India’s economic trajectory, marked by stability, fiscal discipline, and sustained growth, reflects the government’s continued focus on building a resilient and competitive economy.

For the real estate sector, we are particularly encouraged by the initiatives such as accelerating asset monetisation through REITs and continued infrastructure development in cities with over 5 lakh population, including tier-2 and tier-3 markets. These measures will support balanced urban growth, improve liveability, and create new opportunities for communities across the country. At Emaar India, we remain committed to contributing to this growth journey by developing world-class, future-ready communities that align with India’s evolving aspirations.

The strong focus on boosting manufacturing, empowering MSMEs, and accelerating infrastructure development, along with the push for advanced technologies like AI and long-term stability, will help strengthen India’s competitiveness and support sustainable growth. The next few years present a significant opportunity to drive inclusive growth across regions and communities. At Emaar India, we remain committed to supporting the government’s vision by delivering projects that embody quality, innovation, transparency, and sustainability.”

Amit Goyal, Managing Director, India Sotheby’s International Realty: “The Union Budget 2026 underscores policy continuity and a sustained focus on infrastructure and urban development, both critical for real estate growth. A stable macro framework and fiscal discipline reinforce long-term confidence, especially in premium and luxury housing. For discerning buyers, improved urban livability and economic resilience remain key drivers, even as global uncertainties influence near-term sentiment.”

Mahek Modi, Whole-Time Director & CFO of Modis Navnirman Limited: “We welcome the 2026–2027 Union Budget’s strong and sustained emphasis on urban infrastructure and capex-led growth. With a record-effective capital expenditure outlay of ₹17.14 lakh crore and continued prioritisation of urban development, the Budget reinforces the government’s commitment to transforming India’s metropolitan centres through better connectivity, upgraded civic systems and accelerated redevelopment. These investments significantly enhance the livability, accessibility and long-term value of urban assets.

The substantial increase in total transfers to states ₹25.43 lakh crore in FY27 provides crucial fiscal capacity for state and city governments to strengthen urban renewal efforts, particularly in larger cities where redevelopment of aging housing stock is urgent. This resource flow, combined with steady support for centrally sponsored urban schemes, will help cities like Mumbai address density challenges, modernise civic infrastructure and deliver well-integrated, sustainable real estate growth.

Overall, the Budget offers stronger policy continuity, fiscal visibility and long-term confidence for redevelopment-focused investments across India’s urban landscape.”