Shekhar Patel, President, CREDAI

Infrastructure push in the budget is a big positive for the real estate sector. Investments in highways, metros, logistics corridors and urban infra will improve connectivity, unlock new growth corridors and support long-term urban development. Faster approvals, simplified processes and greater digitisation can significantly reduce project timelines, ultimately benefiting both developers and homebuyers. 

However, it is deeply disappointing that there is nothing concrete for affordable housing and it is feared that with the current outdated definition of affordable housing, the supply may further decline from 18% to 12%.. This is a clear warning signal for the lower middle and middle class. Rising construction costs and high land prices without without corresponding policy support, are pushing developers away from this segment. If affordable housing supply continues to weaken, this will result in higher rentals, longer commutes and growth of informal housing. The government must give urgent policy attention to affordable housing to ensure inclusive and sustainable urban growth.

Ashwinder R Singh, Chairman, CII Real Estate Committee & Vice Chairman, BCD Group

The budget is a clear infra-first stability driven budget. It is supportive to realty fundamentals rather than incentives. The government has consciously chosen long-term capacity building over short-term stimulus. Infrastructure is the backbone of this budget because capex is being raised to INR 12.2 lakh crore.  The intent is clear- the infrastructure remains India’s priority growth engine and when infrastructure strengthens, real estate grows. 

The budget has rightly focused on Tier-2 and Tier-3 cities where maximum growth is going to come for the real estate for the coming decade or so. FY’27 budget also talks in terms of TOD corridors. This is how the real estate demand will grow beyond metros. This will translate into housing demand over the medium term.

Parveen Jain, President, NAREDCO

The decision to hike the capex with a special focus on cities with a population of over 5 lakh is a farsighted move in the budget towards balanced urban development. This will act as a strong booster for real estate in Tier 2-3 cities, accelerating urbanisation beyond metros. Most importantly for developers, the proposed Infrastructure Risk Guarantee Fund, will help mitigate project risks during the development and construction phases. This will enhance lender confidence and facilitate easier access to finance, supporting timely project completions. 

The establishment of REITs to accelerate the recycling of real estate assets of CPSEs, will prmote efficient utilisation of capital and assets while creating new investment opportunities for the real estate sector. With government’s continuous support for asset monetization, this budget creates a stable, reliable and conducive environment for real estate development. The announcement of 7 high speed rail corridors will further strengthen infra-led development corridors such as Mumbai-Pune, Pune-Hyderabad, Hyderabad-Bangalore, Hyderabad-Chennai, Chennai-Bangalore, Delhi-Varanasi, Varanasi-Siliguri, boosting regional connectivity and spur realty-growth.

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 CPSEs into 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 act as a massive catalyst for the asset class with substantial increase in capital flows.

 Some other sector-led initiatives like 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, positively impacting real estate. 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. 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.  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. The proposed development of new tourism clusters centered on spiritual, cultural, heritage and medical tourism, 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.Further, 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. These measures will incentivise global hyperscalers and accelerate capacity build-out, 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, 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) & AI domains. 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. 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. 

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, CEO, Vestian

The budget 2026 has 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.

Amit Goel, MD, India Sotheby’s International Realty

The union budget underscores policy constraints 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 uncertainty influences near-term sentiment.

Ashish Raheja, MD & CEO Raheja Universal

With a strong capex commitment, the budget continues government’s push towards infra-led growth. What stands out is the focus on building well-planned cities beyond metros. The creation of city economic regions with 5000 crore allocation per region over 5 years, will significantly improve connectivity and urban infra in Tier 2 and Tier 3 markets opening up new opportunities across residential, commercial and mixed-use developments.

The proposed Infra Risk Guarantee Fund is a practical step that can ease construction-phase risks and encourage greater private investment in large, long-gestation risks. The proposed tax holiday for GCCs is expected to generate demand for large-scale data centres. Overall, these measures support the broader vision of Viksit Bharat by helping create more sustainable, livable and future-ready cities for both developers and home buyers.

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 reforms anchored in an infrastructure-led growth strategy, emphasis on Tier-1 and Tier-2 markets 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.

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.