Mr Badal Yagnik, CEO & Managing Director at Colliers India The budget has taken a measured approach to balance India’s long-term growth ambition and inclusivity across regions & economic segments as well. The overarching growth theme is evident in the form of focus on manufacturing scale up in strategic sectors, rejuvenation of legacy industrial sectors, creation of champion MSMEs, infrastructure push, long-term energy security & stability and development of city economic regions. Indian real estate particularly stands to benefit from the targeted emphasis on manufacturing capability enhancement and infrastructure augmentation in the form of Dedicated Freight Corridors, high speed rail corridors, nationalization of inland waterways, development of urban clusters etc.
Driven by the budgetary focus, we expect traction in real estate requirement from textile, healthcare, semi-conductor & rare earth segments and firms within the Animation, Visual Effects, Gaming, and Comics (AVGC) and Artificial Intelligence (AI) domain. Interestingly, the proposed tax holiday for foreign cloud service providers will significantly accelerate data centre growth by attracting global hyperscalers and deepen long term investment in the segment, positioning India as a preferred hub for digital infrastructure and cloud based service economy. Furthermore, there is a clear focus on identifying and leveraging the growth drivers of Tier II & III cities including temple towns. Meanwhile, the pertinent focus on tourism, training, skill development, creation of infrastructure will have a positive domino effect on the real estate sector in the areas of hotels, guest houses, second homes and primary housing as well. Overall, the budget has emphasized strengthening competitiveness and augmenting manufacturing capabilities by integrating into the global value chain. In fact, India looks poised to move beyond capacity creation into capability building, which is likely to form the blueprint of sustained long-term growth, especially in these times of global uncertainties.
Although direct real estate announcements were limited in the budget, the focus on manufacturing and urban development is likely to accelerate growth across asset classes such as industrial & warehousing, data centers, retail, hospitality and to an extent office market as well. Specifically, the proposed tax holiday up to 2047 for foreign cloud service providers will help in attracting global hyperscalers and deepen long‑term investment in the data center segment. Impetus in the form of Semiconductor Mission 2.0, Electronics Component Manufacturing Scheme and Rare Earth Corridor can provide a long-term boost to the EV industry and hence boost long-term warehousing requirements. Similarly, the focus on pharmaceuticals through the allocation of INR 10,000 crore fund can amplify the demand for specific office space requirements in life science hubs of the country.
Urban development and real estate growth is set to accelerate in Tier II & III cities, driven by the INR 5,000 crore funding per City Economic Regions (CER) over a period of next five years. Initiatives aimed at tourism and skill development have the potential to drive consumption, enhance employment opportunities and spur real estate demand in untapped and emerging markets. Furthermore, recycling of real estate assets of public sector enterprises through setting up of dedicated REITs can deepen the REIT market participation and enhance yield of investor portfolios.
Mr Tanuj Shori, Founder and CEO, Square Yards “The Budget’s continued focus on capital market deepening and asset recycling, including monetisation of public sector real estate through REIT structures, reinforces the role of REITs and InvITs as mainstream investment vehicles. We are likely to see a steady rise in new REIT and InvIT listings over the medium term, covering office assets, retail centres, logistics parks, data centres and infrastructure portfolios. For retail investors, this expands access to high-quality, income-generating real assets that were earlier largely available only to institutions. They offer the dual benefit of regular yield visibility and participation in long-term asset appreciation, while providing liquidity through listed markets. Over time, these investment engines in the market will also improve transparency, valuation discipline and governance across the real estate ecosystem, strengthening overall investor confidence.”
Mr Shrinivas Rao, FRICS, CEO, Vestian “The Union Budget 2026 outlines a clear roadmap towards achieving Viksit Bharat by 2047, with a strong emphasis on accelerating the digital economy, upskilling the future workforce, strengthening infrastructure, promoting tier-2 and tier-3 cities, and reforms to ease financing from foreign investors. The budget aims to strengthen the growth ecosystem of the real estate sector by enhancing connectivity between emerging and established urban centers and by promoting the development of economic regions. These measures are expected to attract GCCs to tier-2 and tier-3 cities, enabling them to leverage cost efficiencies and long-term growth opportunities. Additionally, the data centre industry is poised for heightened traction following the announcement of a tax holiday till 2047. The budget also charts a clear growth trajectory for the hospitality sector through focused initiatives aimed at boosting tourism.”
Mr Amit Goyal, Managing Director, India Sotheby’s International Realty The Union Budget 2026 underscores policy continuity and a sustained focus on infrastructure and urban development, both critical for real estate growth. A stable macro framework and fiscal discipline reinforce long-term confidence, especially in premium and luxury housing. For discerning buyers, improved urban livability and economic resilience remain key drivers, even as global uncertainties influence near-term sentiment.
