Infrastructure Triumph, Affordability Gap: Real Estate Leaders React to Budget 2026

The Union Budget 2026 has drawn a chorus of reactions from real estate industry leaders, who
largely commend its infrastructure-driven approach, emphasis on Tier-2 and Tier-3 cities, and
key reforms like the Infrastructure Risk Guarantee Fund and dedicated REITs for monetising
CPSE land assets. These measures, including a public capex push to ₹12.2 lakh crore and a
₹5,000 crore allocation for urban infrastructure in emerging cities, are seen as providing strong
long-term momentum and execution confidence—though many voices express disappointment
over the absence of direct incentives for affordable housing, such as enhanced tax relief or
revised price/area caps.
Industry experts highlight how the Budget’s focus on connectivity (including seven high-speed
rail corridors), risk mitigation, and balanced urbanisation aligns with sustainable growth under
the Viksit Bharat vision, while underscoring the need for sharper demand-side support to sustain
mass housing momentum.
Here are standout quotes from prominent real estate leaders capturing the sector’s nuanced
response:

Manish Agarwal, Managing Director, Satya Group, and President, CREDAI Haryana:

“Ahead of the Union Budget 2026, the real estate sector was expecting a mix of demand-side
stimulus, tax incentives and execution-friendly reforms. While some expectations remain
unaddressed, the Budget’s strong emphasis on infrastructure-led growth, a reforms-over-
rhetoric approach, and sustained focus on Tier-1 and Tier-2 cities provides a solid foundation for
long-term sector stability. The industry continues to seek sharper support for affordable housing
through rationalised transaction costs and easier access to finance to sustain mass demand.
The move to monetise CPSE-owned land is a pragmatic step that can unlock urban supply,
support planned densification, and attract institutional capital, enabling more balanced and
productive urban development.”

Ankush Kaul, President – Sales, Marketing & CRM, Central Park:

“With Union Budget 2026 setting the tone for infrastructure-led growth, the real estate sector
draws comfort from the government’s continued focus on connectivity, urban development and
policy reform. The higher capital expenditure and reform momentum strengthen the long-term
outlook for housing demand, especially across Tier-1 and Tier-2 cities, while aligning well with
the broader Viksit Bharat vision. The proposal to simplify TDS compliance on NRI property
transactions by routing it through the resident buyer’s PAN is a welcome step, as it reduces
transaction timelines and eases deal closures. Together, sustained infrastructure investment
and thoughtful urban planning can unlock wider opportunities for premium residential and
mixed-use developments across India.”

Anil Godara, Founder and Managing Director, J Estates:

“The Union budget 2026 meaningfully reshapes the growth conversation around India’s Tier 2
and Tier 3 cities. The ₹5,000 crore yearly allocation for urban infrastructure reflects a clear
intent to build these cities as self-sustaining growth centers rather than spillovers of metros.
These markets are seeing rising housing demand driven by improving connectivity, employment
migration, and lifestyle aspirations. While Tier 1 cities are nearing peak maturity, emerging cities
offer long-term scalability. The proposed Infrastructure Risk Guarantee Fund is a pragmatic
move that strengthens lender confidence during the construction phase, enabling smoother
execution and responsible private investment.”

Parvinder Singh, CEO, Trident Realty:

“The budget’s focus on strengthening Tier 2 and Tier 3 cities is a timely and practical step for
the real estate sector. A dedicated ₹5,000 crore allocation for urban infrastructure sends a clear
signal that these cities are being positioned as credible growth hubs, not secondary markets.
With improving civic amenities and transport networks, demand from homebuyers and
professionals is naturally accelerating. For developers, these locations offer far greater flexibility
than mature Tier 1 cities. The Infrastructure Risk Guarantee Fund further strengthens the
ecosystem by offering calibrated credit support, reducing execution risk and enabling more
responsible private participation.”

Aman Sharma, Founder and Managing Director, Aarize Group:

“The Union Budget 2026 sends a strong, reassuring signal to the real estate and infrastructure
ecosystem. The focused allocation for Tier 2 markets recognises where India’s next major real
estate opportunity will take shape. These cities offer something compelling: land availability,
room to scale, and strong growth potential. The introduction of the Infrastructure Risk Guarantee
Fund is a timely intervention that will help unlock long-term capital and reduce execution risks,
especially for large-scale projects. Combined with the continued infrastructure push, this budget
strengthens economic momentum, improves connectivity, and creates a virtuous cycle for
housing, industry, and employment. For developers, it restores confidence to plan, invest, and
build for sustainable growth.”

Mohit Jandu, MD, J Infratech:

“Strategic initiatives, such as the seven high-speed rail corridors and the North-East Buddha
Circuit, exemplify a shift toward inclusive, multimodal connectivity. Furthermore, the
Infrastructure Risk Guarantee Fund is a pivotal reform; by mitigating construction-phase risks, it
bolsters lender confidence and ensures the timely execution of mega-projects. Together, these
measures create a robust foundation for regional integration, tourism, and sustained economic
expansion.”

Mahek Modi, Whole-Time Director & CFO, Modis Navnirman Limited:

“We welcome the 2026–2027 Union Budget’s strong and sustained emphasis on urban
infrastructure and capex-led growth. With a record-effective capital expenditure outlay of ₹17.14
lakh crore and continued prioritisation of urban development, the Budget reinforces the

government’s commitment to transforming India’s metropolitan centres through better
connectivity, upgraded civic systems and accelerated redevelopment. These investments
significantly enhance the livability, accessibility and long-term value of urban assets. The
substantial increase in total transfers to states ₹25.43 lakh crore in FY27 provides crucial fiscal
capacity for state and city governments to strengthen urban renewal efforts, particularly in larger
cities where redevelopment of aging housing stock is urgent.”

Bala Ramajayam, Founder and Managing Director, G Square Group:

“We congratulate the government on presenting a forward-looking Union Budget that reinforces
infrastructure as a foundation for sustainable real estate growth. The Budget provides a strong
tailwind for the real estate sector in Tamil Nadu, especially in Chennai and emerging growth
corridors across the state. The continued focus on infrastructure development, city economic
regions, Tier I and Tier II cities, and improved connectivity will accelerate planned urban
expansion and enhance the attractiveness of well-developed residential locations.”
At Mauve, these industry reactions underscore a prevailing sense of optimism tempered by
calls for more targeted affordable housing measures. The Budget’s heavy weighting toward
infrastructure execution, risk de-risking via the Guarantee Fund, urban focus on Tier-2/3 cities,
and asset unlocking through REITs positions the sector for resilient, scalable
expansion—aligning closely with our strategy of developing quality, connected projects in high-
growth markets. While the lack of direct fiscal boosts for mass housing remains a noted gap, the
overall emphasis on long-term stability and balanced development offers a compelling
foundation for sustained progress toward Viksit Bharat.