Digital real estate | From homes to shops: Budget 2026 prepares the way for broad real estate growth

The Union Budget 2026 has received overwhelmingly positive responses from real estate and investment leaders, who see the government’s continued focus on infrastructure, urban development and capital expenditure as a key catalyst for the long-term growth of the real estate market.From Tier II and Tier III cities to digital infrastructure and retail-led expansion, industry stakeholders believe the policy drive could reshape demand patterns across segments.

Infra is committed to strengthening the demand for housing
Amrita Gupta, managing director of Manglam Group, said the Budget has boosted confidence in Indian real estate growth. According to her, the continued focus on infrastructure creation, urban development and housing-led demand lays a strong foundation for long-term planned growth in Tier II and Tier III cities. She added that higher public capital expenditure and strengthening emerging urban centers will improve livability, connectivity and the overall quality of urban ecosystems, which should increase end-user confidence and support stable housing demand. Gupta noted that for developers like Manglam Group, the Budget offers a positive and encouraging outlook for housing growth in emerging cities.

Capex and risk guarantees to increase financing confidence
Binitha Dalal, Founder and Managing Partner of Mt. K Kapital, highlighted that the Union Budget 2026-27 signals continued momentum in infrastructure and real estate-led growth, with proposed public capital expenditure of Rs 12.2 lakh crore for FY27.

She pointed out that the proposed Infrastructure Risk Guarantee Fund is a meaningful step as it can strengthen the confidence of lenders and reduce financing risks during the development and construction phases of major projects. Dalal also highlighted the government’s commitment to position India as a global hub for next-generation digital infrastructure, along with introducing dedicated REITs to accelerate recycling and monetization of CPSE real estate assets, opening new avenues for institutional capital and better asset utilization.Level II, Level III and temple cities in focus
Mohit Goel, Managing Director, Omaxe Ltd, said the Union Budget 2026 strengthens India’s growth momentum through a strong and sustained commitment to infrastructure and urban development, with public capital expenditure increasing to Rs 12.2 lakh crore in FY27.He noted that what stands out is the sharp focus on Tier II and Tier III cities like Chandigarh, Indore and Ludhiana, along with culturally important temple towns like Ayodhya and Vrindavan. Goel noted that these sites are evolving from primarily pilgrimage sites to vibrant urban and economic hubs, supported by infrastructure improvements, tourism-led activities and renewed social investments.

Industrial corridors and REITs to strengthen real estate potential
Samir Jasuja, Founder and CEO of PropEquity, said the Budget’s emphasis on infrastructure-led growth, development of industrial corridors and manufacturing hubs, data centres, high-speed rail corridors and dedicated freight corridors will strengthen the economic potential of Tier II and Tier III cities.

He also highlighted recycling of CPSE real estate assets through dedicated REITs and allocation of Rs 5,000 crore per economic region of the city over five years as steps that will boost real estate growth across categories. According to Jasuja, these measures will pave the way for comprehensive development of the Indian economy by strengthening urban ecosystems beyond the metropolises.

Retail and consumption to benefit from connectivity
Ashish Bhutani, CEO of Bhutani Infra, said the Union Budget 2026-2027 paves the way for a consumption-led growth cycle in India’s retail economy. He attributed this to easing tax frictions, supporting SMEs and decisive investments in logistics and connectivity, which directly strengthened purchasing power and last-mile access.

Bhutani added that the real impact will be felt beyond the metros as organized, digital and neighborhood retail expands deeper into the Tier II and Tier III markets. According to him, the Budget not only supports retail growth but also democratizes it.

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Organized real estate to expand outside the metropolises
Amit Modi, managing director of County Group, said the decision to increase capital expenditure to Rs 12.2 lakh crore reinforces the government’s long-term commitment to infrastructure-led growth, which is critical for the real estate sector.

He noted that sustained infrastructure improvement in Tier II and Tier III cities will improve connectivity, expand urban infrastructure and unlock new residential markets beyond the metro. Modi added that as these cities integrate into regional growth corridors, organized and planned real estate development is likely to increase. He also said the Infrastructure Risk Guarantee Fund will strengthen the ecosystem by increasing confidence in financing and reducing execution risk for long-term projects, encouraging greater participation from developers and institutional investors.

Outlook
Industry leaders broadly agree that Budget 2026 has set the tone for real estate growth by combining infrastructure investment, financial risk mitigation and urban expansion. With a clear emphasis on emerging cities, asset monetization and consumption-led development, the policy direction is expected to support the residential, commercial and retail real estate segments in the medium to long term.