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.” – Aman Sharma, Founder and Managing Director, Aarize Group.
The Union Budget’s ₹12.2 lakh crore allocation for FY27 reinforces a strategic commitment to infrastructure-led growth. This massive capital outlay provides long-term fiscal clarity, aimed at slashing logistics costs and boosting productivity.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. – Mohit Jandu, MD, J Infratech
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 – Parvinder Singh, CEO, Trident Realty.
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.” – Anil Godara, founder and managing director, J Estates.
