The real estate sector sees a renewed push through infrastructure expansion, urban development programs, and policy clarity around housing and land governance. Investments in transport corridors, smart cities, and regional connectivity are expected to unlock new growth zones beyond traditional metros. Industry leaders have shared their reactions below.
Bhavik Vora, Partner, Grant Thornton Bharat ON REITs: REITs for CPSEs have been under discussion for quite some time, and the proposal has now been highlighted in Budget 2026. While the REIT structure will undoubtedly help CPSEs raise much‑needed capital for long‑term investments, a key near‑term challenge will be determining fair rental values for self‑owned assets. Striking the right balance will be critical to ensuring transparency and fairness without adversely impacting the future profitability of CPSEs.
Mr. Shekhar Patel, MD and CEO, Ganesh Housing Limited: Union Budget 2026 reinforces a clear shift in India’s growth approach by placing Tier-2 and Tier-3 cities at the heart of the Viksit Bharat vision. The continued focus on infrastructure development, MSME expansion, manufacturing and semiconductor ecosystems, along with digital capacity building across AI and technology, strengthens the foundation for employment creation and enterprise growth beyond traditional metropolitan markets.
For the real estate sector, the Budget improves long-term fundamentals around connectivity, capital confidence and planned urbanisation. Cities such as Ahmedabad stand to benefit significantly from this approach, given their strong industrial base, improving urban infrastructure and growing appeal as destinations for businesses, talent and institutional capital. The emphasis on digital public infrastructure and technology-enabled governance will further shape how such cities plan, develop and manage real assets, supporting more efficient and future-ready urban ecosystems.
As enterprises, technology-led companies and GCCs diversify their geographic footprint, demand will increasingly move towards well-planned, compliant residential and commercial developments in emerging markets. Budget 2026 provides the policy stability and execution momentum required for developers to invest with confidence, align supply with economic growth, and support the next phase of balanced urban and economic transformation.
Manish Sharma, Sector Leader – Infrastructure, Transport and Logistics, PwC India :
After more than 30% increase in capex between FY23 and FY25, the budget has now settled down to a modest growth of around 11% in FY26 and now to 9% for FY27. The emphasis is now shifting towards enabling better execution. Launch of initiatives like partial credit guarantee mechanism is one such intervention, where large number of new project developers are entering into PPP opportunities, with likelihood of user charge-based PPP projects like toll roads gaining traction, this could increase the risk profile for lenders and impact financial closures. Therefore, credit guarantee mechanisms should address the concerns of lenders, however, these mechanisms need to work before the default and not after a default has occurred.
Setting up seven new high speed rail corridors and DFCs is another welcome step, however, launching these developments need to be tied down to iron clad, irrevocable state government commitments on aspects like land, first and last mile access arrangements, and security to ensure timebound execution. REITs for surplus CPSE lands is a long overdue intervention and, if effectively implemented, it could lead to a significant asset monetisation opportunity. The focus on creating a domestic capability in construction and infrastructure equipment and container manufacturing is a positive move to address the vulnerability which supply chain disruptions can cause to the country’s infrastructure and trade agenda.
Finally, the creation of City Economic Regions is a welcome step to check the unplanned and uncontrolled proliferation of Tier 2 and 3 cities and, capitalise on the economic opportunities they present, though this will require reforms to happen in tandem with creation of CERs, inclusion of peri-urban regions in municipal limits, recognising industrial clusters as an integral part of city planning, and extending reliable and quality municipal services to such regions.
Mr. Gaurav Pandey, Co-Chairman, FICCI Committee on Urban Development and Real Estate, and Managing Director & CEO, Godrej Properties: The Union Budget 2026 continues the strong focus on infrastructure-led growth, with a record INR 12.2 lakh crore capital expenditure and sustained emphasis on urban development, connectivity, and city-led growth. Measures such as the Infrastructure Risk Guarantee Fund, expansion of transport corridors, and support for city economic regions are positive for real estate demand over the medium term. The Government’s commitment to fiscal discipline and long-term growth creates a stable macroeconomic foundation, strengthening confidence across sectors and supporting sustained economic expansion.
Aalap Bansal Partner G&PS, Industrial & Infrastructure Development Advisory and Lead – Tourism, Sports & Leisure, KPMG in India: Budget 2026-27 firmly establishes India as a high-value global care hub. By focusing on Medical Tourism, the government recognizes healthcare as a dual engine for economic growth and skilled employment. This creates a robust ‘care economy’ corridor, integrating clinical excellence with world-class hospitality to drive sustainable international demand.
Vivek Agarwal, Partner and Head, Public Infrastructure, KPMG in India: A balanced budget with equitable focus on manufacturing deepening, capital expenditure, primary sector focus and removal of process friction in the taxation realm. Sustained focus on fiscal prudence and push towards strengthening critical minerals value chain, data centre tax holidays and Semiconductor version 2.0 is encouraging.
Mr. Sunil Nair, CEO, Ramky Infrastructure Ltd: The Union Budget 2026 underscores a clear continuity of confidence in India’s infrastructure growth story. The proposal to establish an Infrastructure Risk Guarantee Fund is a particularly forward‑looking intervention, it directly addresses one of the biggest hurdles in the sector: risk perception during the early stages of project development and construction. By offering partial credit guarantees to lenders, the Fund will not only ease financing bottlenecks but also embolden private players to invest in new, large‑scale projects with greater assurance.
Equally significant is the government’s move to accelerate asset monetisation through dedicated Real Estate Investment Trusts (REITs) for Central Public Sector Enterprise (CPSE) owned real estate. This will unlock dormant capital, enhance liquidity in the system, and catalyse a new wave of investments across allied sectors like logistics, housing, and industrial infrastructure.
Complementing these reforms, the Budget’s thrust on industrial infrastructure through the Chemical Park and bulk drug park, Biopharma Shakti schemes enhances India’s manufacturing and innovation ecosystem. The Chemical Park and bulk drug park will create plug‑and‑play clusters to boost domestic chemical production and reduce imports, while the ₹10,000 crore Biopharma Shakti initiative aims to build a globally competitive biopharma ecosystem through new NIPERs, clinical trial networks, and upgraded regulatory standards.
Finally, with a proposed capital expenditure of ₹12.2 lakh crore for FY 2026‑27, the Budget reaffirms infrastructure as the backbone of India’s economic momentum. These measures together create a balanced ecosystem, de‑risked, capital‑efficient, and geared towards sustainable, high‑velocity growth. For developers like Ramky Infrastructure, this paves the way for deeper partnerships in nation‑building.Additionally, we have attached the image and profiles of Mr. Nair and Ramky Infra for your reference
Ms. Aparna Reddy, Executive Director, Aparna Enterprises Ltd: We welcome the Union Budget 2026–27, which reinforces infrastructure as a key pillar of India’s growth journey. The enhanced capital expenditure allocation of ₹12.2 lakh crore signals continued support for large-scale construction and connectivity projects, helping sustain momentum across the infrastructure ecosystem. The proposed Infrastructure Risk Guarantee Fund addresses an important challenge in project execution by helping mitigate risks during the construction and early development phases. By improving financing confidence for developers and lenders, this measure can contribute to stronger project viability and more predictable execution timelines.
The Budget’s emphasis on planned urban development through City Economic Regions, along with continued infrastructure expansion in Tier II and Tier III cities, reflects an approach that supports more balanced urban growth beyond traditional metropolitan centres. As these emerging cities continue to grow, improved connectivity and infrastructure are expected to drive demand for housing, commercial real estate, and supporting urban amenities. This expansion will translate into sustained construction activity and steady demand for high-quality building materials such as cement and concrete. The scale and spread of infrastructure initiatives outlined in the Budget create a conducive environment for long-term capacity building in the construction sector, supporting the development of resilient cities and addressing the evolving needs of a rapidly urbanising population.
Mr. Sanjay Dutt, MD and CEO, TATA Realty and Infrastructure Ltd: Union Budget 2026 reflects a deliberate policy stance anchored in continuity, reform depth, and macroeconomic resilience rather than short-term stimulus. At a time of global volatility and uneven recovery, the Budget reinforces India’s investment-led growth model, with public capital expenditure rising to ₹12.2 lakh crore in FY27. Sustained investments in integrated urban growth corridors, high-speed rail networks, national waterways, and core urban infrastructure are likely to reshape spatial economics by improving connectivity, lowering logistics costs, and enabling the emergence of new economic clusters across Tier II and Tier III cities. Over time, this can drive more balanced urbanisation, higher productivity, and decentralised growth.
A defining feature of the Budget is the long-term policy clarity extended to data centres and digital infrastructure. Tax certainty, enabling frameworks, and allied measures position India as a competitive global hub for cloud services and data storage, aligning with the broader shift towards a digital and AI-driven economy. When viewed alongside calibrated SEZ flexibility, REIT-led monetisation of public assets, and the proposed Infrastructure Risk Guarantee Fund, these initiatives signal a maturing capital ecosystem—one that improves risk allocation, enhances institutional participation, and deepens long-term capital pools for real estate and infrastructure development.
Further, the Budget’s emphasis on the expansion of GCC operations and tourism led growth into emerging cities will support high-value employment, knowledge spillovers, and sustained office demand, while tourism infrastructure investments act as multipliers for local economies—driving hospitality, retail, logistics, and housing demand. Taken together, Union Budget 2026 reinforces the structural drivers of income, employment, and investment, laying a credible foundation for steady, broad-based growth across residential, commercial, and industrial real estate over the medium to long term.
