1. Infrastructure Push Drives Real Estate Confidence

Capital expenditure raised to ₹12.2 lakh crore for FY 2026-27 to boost infrastructure development, urbanisation and connectivity — which tends to lift real estate demand across residential and commercial segments.
This continued infra emphasis was welcomed by developers as supportive of project execution and land value growth.

2. Infrastructure Risk Guarantee Fund

A new Infrastructure Risk Guarantee Fund was announced to provide partial credit guarantees to lenders, reducing perceived risk in financing large infrastructure and real estate projects. This is expected to improve credit flow and bolster private sector engagement in built-environment investments.

3. Dedicated REITs for CPSE Real Estate Assets

The Budget proposed creation of Real Estate Investment Trust structures focused on recycling real estate assets owned by Central Public Sector Enterprises (CPSEs).
• This aims to unlock value from under-utilised land and buildings, increase liquidity, and invite institutional and retail capital into real estate via REITs with steady income potential.

4. Focus on Tier-1, Tier-2 and Tier-3 City Development

The Budget emphasised infrastructure and urban development in cities with over 5 lakh population — effectively supporting balanced urbanisation beyond metros and opening new growth corridors for housing and allied real estate segments.
Proposals like City Economic Regions with dedicated allocations also intend to catalyse investment and quality of life in secondary cities.

5. NRI-Friendly Tax and Compliance Changes

While not exclusively a real estate policy, eased tax compliance and repatriation rules for NRIs (such as enhanced investment limits and PAN-based TDS adjustments on property deals) were part of the budget’s broader thrust — likely to influence overseas investment flows into Indian real estate.

Notes on Affordable Housing and Direct Homebuyer Support

Unlike some expectations, immediate tax cuts specific to housing loans or broader affordable housing incentives were not prominent in the final budget text. Analysts note the Budget instead reinforces infrastructure-led demand and long-term asset productivity rather than short-term consumption stimuli for homebuyers.

Bottom line for the real estate sector: the 2026 Budget doubled down on infrastructure and capital markets as the backbone of sustainable growth, introduced new financing and risk-sharing tools, and aimed to draw private and institutional investment into real estate assets — rather than direct tax relief or expanded subsidies. Execution of these frameworks will be key to their real-world impact.