Union Budget 2026 reactions from Real estate experts

By: Mr. Madhusudhan G, CMD, Sumadhura Group:

The Union Budget 2026 places infrastructure and urban development at the centre of economic momentum, creating a strong operating context for real estate over the medium term. Higher public capital expenditure, city-focused planning, and asset monetisation tools collectively set the tone for steady, broad-based urban expansion.

The introduction of the Infrastructure Risk Guarantee Fund is particularly relevant for residential development. Partial credit guarantees during the construction phase can improve funding continuity and reduce execution risk, supporting timely project delivery and reinforcing buyer confidence in large developments.

Urbanisation initiatives built around City Economic Regions and high-speed rail corridors are equally important. Improved connectivity between employment centres and emerging cities can widen residential catchments, support housing demand beyond traditional cores, and encourage more balanced urban growth.

Public asset recycling through CPSE-led REITs adds depth to this framework by bringing underutilised land and buildings into productive use. Such measures often act as catalysts for surrounding residential and commercial activity, strengthening local real estate ecosystems.

The Budget’s emphasis on infrastructure investment, financial system stability, and capital market participation provides a supportive backdrop for housing, rental formats, and specialised real estate segments. For developers, this environment rewards disciplined execution, location alignment, and long-term planning anchored in infrastructure-led growth corridors.

By:- Mr. Vamshi Karangula, Director – Industrial & Logistics, Sumadhura Group

The Union Budget 2026 treats warehousing and logistics as enabling infrastructure for manufacturing and trade, which aligns well with how institutional logistics platforms are being built and operated today. The emphasis is less on standalone storage and more on integrated, compliance-led supply chain infrastructure. Measures such as the safe harbour regime for component warehousing and tax incentives for toll manufacturing in bonded zones support just-in-time production models. For developers of large-format logistics parks, this translates into sustained demand from electronics, engineering, and export-oriented occupiers that value proximity to manufacturing clusters and ports.

Customs reforms that place greater responsibility with warehouse operators, supported by electronic tracking and risk-based audits, also change the operating equation. Facilities designed with governance, traceability, and process discipline become more relevant, while scale and network capability matter more than fragmented, single-location assets. The ability to move goods across bonded warehouses without procedural friction further strengthens hub-and-spoke logistics models.

Investments in freight corridors, waterways, and coastal cargo routes broaden the geography of viable logistics nodes. For groups developing warehousing across growth corridors, the Budget reinforces a long-term opportunity anchored in execution quality, location discipline, and alignment with India’s expanding industrial footprint.

By:- Mr. Darshan Govindaraju, Executive Director at Vaishnavi Group

The Union Budget 2026 reaffirms real estate as a key driver of India’s growth, supported by a balanced thrust on infrastructure expansion, employment creation through technology and medical-tourism hubs, and asset monetisation via REITs. These measures open up meaningful opportunities across both commercial and residential development, while accelerating enterprise–developer partnerships for built-to-suit medical infrastructure. The emphasis on technology-led development and financing is particularly encouraging and will drive greater efficiency, scale and institutional participation in the sector.