New Delhi, Feb 3 (UNI) The real estate sector, spanning residential, commercial and retail segments, has welcomed the union Budget 2026–27, saying it reinforces confidence in India’s long-term real estate growth story. Industry leaders noted that the government’s continued focus on infrastructure creation, urban development and housing-led demand lays a strong foundation for planned and sustainable growth, particularly across Tier II and Tier III cities.
Gupta highlighted that higher public capital expenditure, along with the development of emerging urban centres, will significantly enhance liveability, connectivity and the overall quality of urban ecosystems. These measures, she said, are likely to strengthen end-user confidence and support stable housing demand. For developers such as Manglam Group, the Budget offers a positive and enabling outlook for residential growth in these fast-evolving cities.
Adrija Agarwal, Vice President – Business Development at Sattva Group, pointed to the broader economic impact of infrastructure-led growth. “The focus on infrastructure spending has a real ripple effect. Improved connectivity enhances ease of travel, enables more efficient sharing of resources, and leads to better utilisation across manufacturing and infrastructure. This helps accelerate consumption and creates a more balanced economy,” she said.
She further noted that the scale of capital expenditure reflects a careful blend of fiscal discipline and long-term vision. “The capex push demonstrates fiscal prudence combined with a structural approach to growth. The emphasis on strengthening the service economy through supportive tax structures for data centres and Global Capability Centres will build growth momentum and reinforce India’s position as a preferred destination for global enterprises,” Agarwal added.
One of the key announcements that drew widespread attention across the sector was the proposed Infrastructure Risk Guarantee Fund, aimed at de-risking large-scale projects and encouraging greater private-sector participation.
According to Saurabh Vohara, Founder and CEO of ALYF, the initiative could significantly improve execution confidence. The Budget, he said, “sets a positive tone for India’s real estate sector, particularly by reinforcing growth beyond traditional metropolitan markets.”
Vohara also welcomed the government’s continued emphasis on asset monetisation. Measures such as REITs and the reuse of public real estate assets are expected to facilitate long-term capital flows while contributing to a more organised and resilient ecosystem. Coupled with sustained investments in infrastructure and connectivity, housing demand across Tier I and Tier II cities is likely to maintain strong momentum.
“As economic activity and urban development become more evenly distributed, these policy measures can reshape how and where Indians choose to live,” Vohara observed. He added that this shift is especially relevant for the second homes segment, where improved access and evolving lifestyle preferences are expanding demand beyond city limits.
Echoing similar optimism, Tony Vincent, Chairman of Aratt Developers and Ayatana Hospitality, described the Budget as forward-looking and growth-oriented. “The announcements in the union Budget 2026–27 reflect a strong and progressive vision for India’s real estate and infrastructure future,” he said, adding that the Infrastructure Risk Guarantee Fund would create a more secure financing environment for both developers and lenders.
Vincent also underscored the importance of sustained development in Tier II and Tier III cities, supported by high-speed connectivity corridors and expanding urban infrastructure. “This is a growth-focused Budget that strengthens India’s position as a global economic force and reinforces real estate as a core pillar of the country’s development journey,” he said.
nance Minister Nirmala Sitharaman on Sunday, while presenting the budget 2026- 27, said that the government’s key priority is to focus on the development of basic infrastructure across the tier-II and tier-III cities in the country, stating that cities are engines of growth, innovation and opportunities.
Sitharaman said that these tier-II, tier- III cties, as well as temple towns, are in need of modern infrastructure and basic amenities.She further said that the budget further aims to amplify the potential of cities to deliver the economic power of agglomerations by mapping City Economic Regions (CERs) based on their specific growth drivers, with an allocation of Rs 5,000 crore per CER over five years.
The government will identify and map the CERs based on particular drivers of growth, which include the nature of economic activities such as manufacturing, tourism, logistics, and other relevant factors.
According to the minister, this allocation will be done for implementing the plans through a challenge-mode framework with a reform-cum-result-based financing mechanism. Sitharaman emphasised that the country continues to take steps towards balancing ambition with inclusion, as it grows as an economy with expanding trade and capital needs.The focus will be on increasing and improving connectivity and civic infrastructure across Tier-II and Tier-III cities. This, she said, will act as a catalyst to boost local economies, create employment opportunities, and attract investments.
Temple towns, for example, are settlements that have developed over time around important temples and are considered significant economic, cultural, social, and religious hubs. These towns usually thrive on economies driven by pilgrimage, supporting local artisans, weavers, and merchants.Different temple towns have unique offerings in terms of products, which often reflect the region’s culture and heritage.Notably, on the importance of cities, retired IAS officer O P Agarwal said that all rapidly growing economies around the world have seen expansion of economic activities, particularly in manufacturing and services, primarily in urban areas. Cities must be prepared not only to accommodate rapid growth but also to enable it effectively.Future economic growth drivers are very important to be taken as the basis for planning the expansion and development of a city’s infrastructure.
