Budget 2026: Real Estate Gets a Confidence Boost with REITs, Capex Push and Urban Growth Focus

Delhi NCR: Finance Minister Nirmala Sitharaman presented the Union Budget 2026-27, underscoring infrastructure-led growth and strategic fiscal support for key sectors. While headline announcements ranged from higher capital expenditure to income-tax stability, several measures carry significant implications for the real estate industry.

Industry experts welcomed the Budget’s focus on risk mitigation measures such as the proposed Infrastructure Risk Guarantee Fund ,a structure to make lenders more comfortable during high-risk project phases - thereby improving credit flow to real estate projects.

Gaurav K Singh, Chairman and Founder, Womeki Group said, “The proposed increase in capital expenditure to ₹12.2 lakh crore, coupled with the Infrastructure Risk Guarantee Fund, sends a strong signal of policy stability and long-term commitment to infrastructure creation. By mitigating development-stage risks and strengthening credit availability, these measures will accelerate project timelines and improve overall viability for developers. In Delhi-NCR, where real estate demand is closely linked to infrastructure expansion, enhanced freight corridors, asset monetisation through REITs, and improved connectivity will drive growth across housing, commercial offices and warehousing, deepening investor confidence in the region.”
 
A standout policy for real estate was the proposal to establish dedicated Real Estate Investment Trusts (REITs) aimed at monetising and “recycling” under-utilised real estate assets of Central Public Sector Enterprises (CPSEs). This is expected to unlock fresh capital and create new investment avenues for developers and institutional investors alike - a potential game changer for Delhi-NCR office and commercial markets where idle assets are awaiting redevelopment.

The Budget also reaffirmed a record ₹12.2 lakh crore capital expenditure, reinforcing the government’s long-term infrastructure commitment. Higher capex - including transport and urban infrastructure - traditionally boosts real estate activity through improved connectivity and land value appreciation. For regions like Delhi-NCR, where connectivity corridors and metro expansions are integral to urban sprawl, this translates to increased housing and mixed-use demand in peripheral zones.

Abhay Kumar Mishra, CEO & President, Jindal Realty said, "The Union Budget 2026 sends a strong long-term signal for India’s real estate and infrastructure ecosystem, with a clear focus on Tier-II cities such as Sonipat, which benefit from strategic proximity to the national capital(turning out as a new economic hub), alongside Tier-III markets. The proposed Infrastructure Risk Guarantee Fund and asset monetisation through dedicated REITs are expected to unlock capital and strengthen investor confidence. With capital expenditure scaled up to ₹12.2 lakh crore and targeted allocations for City Economic Regions, the emphasis on balanced urban growth is evident. Improved infrastructure, enhanced connectivity and planned urban development will significantly drive housing, commercial and mixed-use real estate demand, positioning emerging cities as the next growth engines of the sector."

Yashank Wason, Managing Director, Royal Green Realty, says, "The Union Budget 2026 is a significant moment for real estate in rising Tier-II hubs like Sonipat and Indore . By committing ₹12.2 lakh crore in capex and launching the Infrastructure Risk Guarantee Fund, the government is providing the structural 'safety net' needed for rapid urban expansion. The ₹5,000 crore City Economic Region initiative will transform these emerging cities into self-sustaining growth engines, while new REITs for CPSE assets will inject institutional liquidity. This budget officially shifts the industry’s focus toward a 'Bharat' growth story, where enhanced connectivity and urban rejuvenation will drive unprecedented value appreciation across India’s emerging skylines.

While no major tax breaks for homebuyers were announced, ongoing schemes like Pradhan Mantri Awas Yojana (PMAY) saw enhanced allocations, potentially stimulating affordable housing in both megacities and satellite towns around Delhi-NCR.

Overall, Budget 2026 strikes a balance between market confidence, asset monetisation, and infrastructure investment - setting a stable platform for the real estate sector to grow in the coming year.