Developers also flagged the proposed Infrastructure Risk Guarantee Fund as a key Budget measure that could ease financing challenges for large urban and regional infrastructure-linked projects.
The realty sector has broadly welcomed the Union Budget 2026 for its strong emphasis on infrastructure and connectivity, viewing it as a supportive framework for the sector’s long-term growth. With public capital expenditure pegged at Rs. 12.2 lakh crore, the introduction of an Infrastructure Risk Guarantee Fund and announcements around high-speed rail corridors and urban connectivity, industry players say the Budget reinforces the government’s focus on strengthening the backbone that underpins real estate development across markets.
Connectivity has been identified as one of the major takeaways for the real estate sector, with developers citing the Budget’s emphasis on rail, road, and transport in cities as a major positive indicator for future urban development. The plan to develop seven high-speed rail corridors: Mumbai-Pune, Pune-Hyderabad, Hyderabad-Bengaluru, Hyderabad-Chennai, Chennai-Bengaluru, Bengaluru-Varanasi, and Varanasi-Siliguri has been cited as a major positive, as it is expected to facilitate inter-city connectivity and thus promote development in new micro-markets. Industry experts believe that such connectivity-driven development plans will ensure more balanced development in the regions, rather than being restricted to the already saturated urban areas.
According to BK Malagi, Vice Chairman, Experion Developers, the government is sending a strong signal of continuity and long-term commitment to infrastructure-led growth through Budget 2026.
“Sustained public capital expenditure, combined with improved construction capabilities, enhances the viability of large-scale real estate developments across metros as well as Tier-2 and Tier-3 cities. Better infrastructure reduces risk, improves asset longevity, and makes emerging markets more attractive to institutional investors. As connectivity improves, we can expect stronger demand for residential projects, office parks, logistics hubs and mixed-use developments along new growth corridors. The broader reform push, including efforts to improve financing frameworks, further supports capital flow into real estate-linked infrastructure. Overall, this Budget lays the groundwork for a more mature, fiscally disciplined real estate market aligned with India’s evolving urbanisation story,” Malagi said.
Developers also flagged the proposed Infrastructure Risk Guarantee Fund as a key Budget measure that could ease financing challenges for large urban and regional infrastructure-linked projects. Industry players said the fund is expected to improve lender confidence by providing partial credit support, particularly for long-gestation developments tied to urban redevelopment and connectivity upgrades. Backed by the government’s higher capital expenditure outlay, the added financial assurance is seen as a step that could help streamline funding access and support smoother project execution, especially in infrastructure-dependent real estate markets.
Pankaj Jain, Founder and CMD, SPJ Group, feels that the Union Budget 2026 has shed significant focus on the infrastructure with a forward-looking approach.
“The Infrastructure Risk Guarantee Fund is a timely measure that will help ease financial constraints, particularly for projects linked to urban redevelopment and regional connectivity. When backed by the government’s increased capital expenditure push to Rs. 12.2 lakh crore, this added layer of financial assurance can significantly improve lender confidence and accelerate project execution. In metro cities, where large-scale infrastructure upgrades directly influence real estate viability, faster delivery and better coordination can enhance asset quality and unlock redevelopment potential. Importantly, assured funding for infrastructure strengthens the backbone on which real estate development depends, like roads, transit, utilities and public amenities. Over time, this will not only de-risk long-gestation projects but also support more sustainable and well-planned urban growth, reinforcing the long-term outlook for residential, commercial and mixed-use developments across key city markets,” Jain added.
Beyond funding support, developers said the Budget’s infrastructure push is expected to improve execution timelines and coordination between public agencies and private developers. With assured capital flows and risk-sharing mechanisms in place, industry stakeholders believe project planning and on-ground delivery can become more predictable, reducing delays caused by fragmented approvals or funding gaps. In metro markets, like Delhi-NCR in particular, where large-scale infrastructure upgrades run parallel to real estate development, better alignment between public works and private construction is seen as critical to improving overall project delivery and asset quality.
“While the sector had hoped for measures around tax rationalisation, enhanced buyer incentives and faster approval mechanisms to further improve project viability, the Budget 2026 has clearly doubled down on infrastructure as the primary growth lever for real estate. Improved mobility has a direct impact on how cities expand, commute patterns evolve, and new economic zones emerge, and the announcement of seven high-speed rail corridors is set to be transformative. For metro regions, faster inter-city travel can unlock peripheral residential markets and ease pressure on core urban areas, while enhanced connectivity will also attract businesses, talent and institutional capital. The focus on upgrading construction and infrastructure equipment is equally important, as execution efficiency and quality delivery are critical for large-scale developments. Backed by a capital expenditure outlay of Rs 12.2 lakh crore, these measures strengthen the ecosystem for long-term, infrastructure-led real estate growth rather than speculative demand,” Sandeep Chhillar, Founder & Chairman, Landmark Group, concluded.
In sum, the real estate sector’s reaction to Budget 2026 is an endorsement of the government’s focus on infrastructure, implementation, and connectivity.
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