Budget 2026-27 Lifts Real Estate Sentiment with Infra Push and Risk Guarantee Fund

The Union Budget 2026-27 has set a positive tone for India’s real estate and infrastructure ecosystem, signalling policy continuity and a clear intent to crowd in private investment. With infrastructure development, affordable housing and asset monetisation placed at the centre of the government’s agenda, industry stakeholders see the Budget as confidence-enhancing for the year ahead.

One of the most closely watched announcements is the proposal to establish an Infrastructure Risk Guarantee Fund. This mechanism is designed to offer calibrated public credit guarantees to lenders during the high-risk phases of infrastructure and construction projects. For the real estate sector, where access to long-term and affordable financing remains a persistent challenge, the move could help ease credit flow and reduce project delays caused by funding constraints.

The Budget also reinforces the government’s focus on affordable housing, a segment that continues to drive end-user demand across urban India. By aligning housing growth with large-scale infrastructure expansion, the policy approach aims to improve liveability, reduce commuting stress and support sustainable urbanisation. This linkage between infrastructure and housing demand is expected to play a critical role in improving homebuyer confidence.

Another key pillar of the Budget is asset monetisation, particularly of underutilised land and built assets held by central public sector enterprises. The proposed use of structured rights-based instruments to unlock value from these assets could free up capital for fresh investments while strengthening the commercial real estate market. Industry experts believe this step could deepen institutional participation and improve transparency in asset ownership and income generation.

Importantly, the Budget sharpens its developmental lens on Tier 1 and Tier 2 cities, recognising their growing role in India’s urban growth story. As economic activity spreads beyond traditional metropolitan centres, targeted infrastructure investment in these cities is expected to create new hubs for housing, employment and commercial development, while easing pressure on larger metros.

Overall, the real estate-related measures outlined in the Union Budget 2026-27 point towards a more stable and predictable operating environment. While execution will remain critical, the emphasis on infrastructure funding, risk mitigation and asset optimisation suggests a year of steady momentum for developers, investors and homebuyers alike.