The Union Budget 2026–27 has drawn mixed reactions from India’s real estate industry, with experts largely describing it as a budget of continuity rather than stimulus. While homebuyers and developers had hoped for fresh tax reliefs or sector-specific incentives, the government chose to maintain existing frameworks, signalling confidence in the market’s current momentum and resilience.
Ruchit Mehta, Partner, Mehta Realty, described the budget as “neutral at best” for real estate. He noted that with residential sales already robust, the government appears to believe the sector no longer requires policy support, leaving near-term growth dependent on buyer sentiment, equity markets, and confidence rather than fiscal measures.
Echoing a similar view, Aditya N. Shah, Joint Managing Director, Mayfair Housing, said there is “nothing materially new” for the sector, but added that real estate is entering this phase from a position of strength. If capital markets and consumer sentiment remain buoyant, housing demand could continue without direct government intervention.
Bhavesh Shah, Joint Managing Director, Today Group, struck a more optimistic tone, calling the budget stable and confidence-building. He highlighted the continued focus on infrastructure spending as a key positive that will shape housing demand, particularly in emerging locations such as Navi Mumbai and Panvel.
Several experts emphasised the long-term implications of infrastructure-led growth. Chintan Sheth, Chairman and Managing Director, Sheth Realty, pointed to the increase in public capital expenditure to Rs 12.2 lakh crore, expansion of high-speed rail, and the proposed Infrastructure Risk Guarantee Fund as transformative measures that will improve execution confidence and elevate construction standards.
Prashant Khandelwal, Joint Secretary of CREDAI MCHI and CEO of Agami Realty, said, “Budget 2026-27 has signalled optimism for the real estate sector through two strategic interventions – the proposed Infrastructure Risk Guarantee Fund will improve access to capital and speed up the completion of large infrastructure projects.” He also welcomed the monetisation of CPSE land assets through REITs, particularly for land-constrained cities like Mumbai, while urging greater policy attention to affordable housing.
Samyag M. Shah, Director at Marathon Nextgen Realty Ltd, added, “The government’s long-term push for urban development and housing affordability, is clear in the Union Budget 2026-27,” highlighting the capex hike, asset monetisation, and improved project financing as steps that will bring predictability to execution.
From a redevelopment and urban housing lens, Sanjay Daga, CEO and Managing Director, Anex Advisory, stressed that long-term policy stability and execution clarity matter more than one-off announcements, especially for multi-year redevelopment projects in cities like Mumbai.
Hardik Pandit, Director, APICES Studio Pvt. Ltd., drew attention to a non-traditional real estate impact: the long-term tax holiday for foreign cloud firms using Indian data centres. He said this policy positions Mumbai as a global digital infrastructure hub, influencing architecture and urban planning priorities.
However, some voices remained critical. Parthh K Mehta, CMD, Paradigm Realty, called the absence of new incentives a “clear miss,” arguing that the government is relying heavily on organic demand and market momentum.
Summing up the broader sentiment, Anuj Goradia, Director, Dosti Realty, said the budget reinforces infrastructure-led growth as the primary catalyst for real estate, strengthening connectivity, financing confidence, and long-term sustainability across segments.
Source: Hello Mumbai News
