What Union Budget 2026–27 means for India’s real estate sector

“The budget solves essential problems of real estate, which involve risk assessment and capital reallocation. The Guarantee Fund de-risks construction financing for developers, while CPSE REITs (Real Estate Investment Trusts for Central Public Sector Enterprises) unlock government asset value. The market trends indicate that Tier-II/III cities will experience the most development. The infrastructure-led development model, which we have promoted for sustainable urban expansion, received validation from our sector.”Vijay RaundalManaging director,Teerth Realties

“The customs system, which now operates with a warehouse operator-centric design, creates a crucial turning point that improves supply chain performance. The introduction of self-declarations and electronic tracking, together with risk-based audits, helps us to establish a governance system.The target of a single digital window for cargo clearance by year-end is particularly promising. It will significantly reduce dwell times and streamline operations.”Lokendra RanawatCo-founder & CEO, WoodenStreet

“The new Income Tax Act, which will come into force from April 2026, might become a latent structural for the land and real estate sector. Easier compliance and removal of legacy provisions help to clear up property transactions, capital gains planning, and long-term ownership. Landowners and developers can benefit from a predictable tax regime that increases their confidence in holding, developing, and monetising their assets. Since households will have fewer regulatory surprises, real estate can once again be seen as a safe, long-term investment rather than a compliance-heavy one. In the long run, this transparency is expected to lead to formalisation, better land records, and more capital flowing into the real estate ecosystem.”Siddharth MauryaFounder and managing director, Vibhavangal Anukulakara Pvt. Ltd.

“The Union Budget underlines a decisive shift in how India’s commercial real estate ecosystem is maturing. Sustained infrastructure expansion is enabling the rise of new business corridors, while employment generation driven by technology, healthcare and knowledge-led industries is redefining where enterprises choose to operate. The growth of medical tourism hubs and innovation clusters is further strengthening demand for high-quality, efficiently planned commercial spaces. Clearer frameworks for asset monetisation through REITs are reinforcing confidence in income-generating commercial assets. Together, these measures are moving the market away from speculative development towards durable and operationally efficient commercial real estate.”Aditya ChellaramExecutive director, Featherlite Developers

“The Infrastructure Risk Guarantee Fund provides essential support that our sector requires at this moment. Private developers have long hesitated on Tier-II/III projects due to construction phase risks. The partial credit guarantee system will enable billions in dormant assets to be released for investment, while dedicated CPSE REITs will help with asset monetisation efforts. The combination of ₹12.2 lakh crore capex with other elements will create new business possibilities.”Shiv GargDirector, Forteasia Realty Pvt. Ltd.

“The government’s freshest actions are a clear indication of a move towards making real estate investment less risky at a whole ecosystem level. Solidifying credit guarantee schemes and making it possible for institutional investors to participate through structured REIT platforms, the policy setting lessens the risk for long-term investors. Public money is strategically deployed to attract private funds, especially in the new urban areas where the lack of financing has been a major hurdle to growth. This strategy not only enhances the market’s ability to absorb more securities and increases the visibility of the assets, but it is also quite instrumental in setting up clear benchmarks. Gradually, such public-private partnership coordination can lead to the creation of a more stable, investible real estate market that is in line with Indias infrastructure, led growth ambitions.”Anurag GoelDirector, Goel Ganga Developments

“The Union Budget 2026 treats warehousing and logistics as enabling infrastructure for manufacturing and trade, which aligns well with how institutional logistics platforms are being built and operated today. The emphasis is less on standalone storage and more on integrated, compliance-led supply chain infrastructure. Measures such as the safe harbour regime for component warehousing and tax incentives for toll manufacturing in bonded zones support just-in-time production models. For developers of large-format logistics parks, this translates into sustained demand from electronics, engineering, and export-oriented occupiers that value proximity to manufacturing clusters and ports.”Vamshi KarangulaDirector – industrial & logistics, Sumadhura Group