The Union Budget 2026 has generated optimism in the real estate sector, particularly around affordable housing and infrastructure-linked urban expansion. Industry leaders say the government’s emphasis on funding mechanisms and connectivity could unlock fresh momentum for housing development across major cities and emerging urban centres.
Mahesh Agarwal, Managing Director of Purti Realty, described the Budget as encouraging for the sector, noting that the focus on infrastructure and housing supply directly addresses rising urban demand. According to him, policy measures announced this year signal a long-term strategy aimed at making housing more accessible while strengthening financing pipelines for developers.
'Budget boosts confidence'
“The Budget is encouraging for the real estate sector, especially for affordable housing. The government’s focus on building better infrastructure and more homes will help meet the growing demand for housing in cities,” said Agarwal. “Steps like using Real Estate Investment Trusts (REITs) and Infrastructure Investment Trusts (InVITs) will help unlock funds from existing assets and support new housing projects. Increased development in Tier 1 and Tier 2 cities will improve connectivity and create more opportunities for homebuyers.”
“Overall, the Budget boosts confidence for developers and buyers and supports long-term housing growth across India,” Agarwal continued.
Affordable housing continues to be a key pillar of India’s urban development strategy, as migration to cities intensifies and property prices remain a concern for first-time buyers. The Budget’s push to channel investments through financial instruments such as Real Estate Investment Trusts (REITs) and Infrastructure Investment Trusts (InVITs) is being seen as a significant step toward unlocking capital tied up in existing assets.
It is to be seen if the government’s infrastructure-heavy approach will improve connectivity between urban clusters, creating new growth corridors and widening homebuyer options. Increased institutional backing is another major takeaway from the Budget.
'Support will make it easier to fund projects'
“Support from institutions such as NIIF and NABFID will make it easier to fund large housing and infrastructure projects,” Agarwal also said.
Improved access to long-term capital could stabilise the real estate cycle, reducing funding volatility that has historically slowed project delivery. With both public investment and private participation aligned toward housing expansion, reports suggest the Budget strengthens confidence among buyers and investors alike.
