Infrastructure & Capex: Indirect Boost to Realty

According to Anuj Puri, Chairman – ANAROCK Group, the Budget acts more as a growth catalyst than an instant relief package for real estate. The increase in public capex to ₹12.2 lakh crore and the focus on Tier-2 and Tier-3 cities are expected to revive housing, commercial, and hospitality demand along upcoming transport and economic corridors.

The push for dedicated freight corridors and seven high-speed rail corridors is likely to unlock land value and development potential across new micro-markets.

REITs & Asset Monetisation: Institutional Capital Deepens

The proposal to create dedicated REITs for CPSE assets—covering railways, ports, telecom towers and government land—has been welcomed across the board.

Gautam Shahi, Director – Crisil Ratings, said the move reflects the maturity of India’s REIT ecosystem, boosting investor confidence while supporting the government’s asset monetisation agenda.

Anuj Puri added that this could help channel long-term institutional capital into Indian real estate, though clarity on taxation and framework is awaited.

Data Centres: Clear Winners of Budget 2026

One of the strongest positives comes from digital infrastructure. The tax holiday for data centres till 2047, combined with safe-harbour clarity, is expected to accelerate hyperscaler investments.

Shaishav Dharia, Director – Lodha Green Digital Infrastructure, called it a strong, long-term signal to global investors, already translating into foreign participation on digital infrastructure platforms, especially in MMR, Chennai, Bengaluru, and emerging Tier-2 hubs.

Capital Markets: Foreign Money Gets Easier Entry

From a broader investment lens, Mitesh Shah, CEO – Equirus Family Office, highlighted the Budget’s move to allow individuals resident outside India to invest directly in Indian equities, raising per-company limits to 10%.

This structural shift is expected to improve liquidity, reduce volatility, and bring longer-duration capital, indirectly benefiting real estate-linked stocks and REITs.

Affordable Housing: The Biggest Miss

Despite these positives, the absence of real estate-specific fiscal incentives—especially for affordable housing—has disappointed the sector.

Anuj Puri pointed out that affordable housing’s sales share has collapsed from over 38% in 2019 to around 18% in 2025, calling for urgent interest subsidies and definition reset.

Echoing this view, Shishir Baijal, Chairman & MD – Knight Frank India, said that while the Budget maintains macro stability and supports medium-term residential and logistics demand, it fails to address affordable housing concerns, which remain critical for inclusive urban growth.

Confidence & Structural Reform Outlook

Offering a broader perspective, Binaifer Jehani, Crisil Intelligence, noted that measures like the Infrastructure Risk Guarantee Fund, CPSE asset monetisation, and City Economic Region mapping improve financing confidence and signal a more data-driven, balanced urbanisation strategy.

Verdict: Good for Long-Term Growth, Weak on Social Housing

Union Budget 2026 is capex-driven, investment-friendly, and structurally positive for commercial real estate, REITs, data centres, logistics, and Tier-2/Tier-3 urban expansion.
However, the lack of direct affordable housing support keeps the impact moderate rather than transformative.

For developers and investors, the message is clear: long-term opportunity is intact—but inclusive housing remains an unresolved challenge.

Also Read: Real Estate Pins Hope on Union Budget 2022-23

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