India’s Union Budget 2026–27 arrives at a moment of global economic uncertainty, yet it positions the country on a trajectory of resilience and long term structural transformation. Backed by strong GDP performance, controlled inflation, and diversified trade partnerships, the Budget reinforces sectoral growth through targeted interventions across manufacturing, services, digital infrastructure, tourism, sustainability, and real estate. While it refrains from dramatic policy overhauls, it strategically boosts economic fundamentals, enhances competitiveness, and supports expansion across Tier II and Tier III markets - collectively strengthening demand drivers across key real estate asset classes.
1. Logistics & Industrial
The Budget pushes India towards a tech driven manufacturing ecosystem with stronger supply chain security and expanded incentives for semiconductors, biopharma, and MSMEs.
2. Residential
While affordability concerns remain unaddressed directly, the Budget indirectly supports housing through higher public infrastructure spending and upcoming university townships that will catalyze new residential clusters. Momentum in luxury and premium housing continues.
3. Office
The Budget promotes broader office expansion by elevating emerging cities through the City Economic Regions (CERs) initiative, while updated IT services norms and smoother compliance pathways strengthen operating certainty for GCCs and service sector occupiers.
4. Hospitality
The Budget expands tourism through medical, spiritual, eco and heritage initiatives while strengthening skilling and digital destination experiences—unlocking wider, year round demand for hotels across emerging and established markets.
5. Retail
With minimal direct incentives, retail growth will rely on consumption trends, though new SHE Marts and assistive tech retail hubs expand access in rural and underserved markets. Personal income tax relief may offer modest short term support.
6. Data Centers
A long-term tax holiday until 2047 and a 15% cost based safe harbour significantly boost the sector’s investment outlook. Power sector restructuring and clean energy exemptions further strengthen operational sustainability for data center growth.
7. Sustainability
The Budget reinforces India’s sustainability agenda through a combination of measures and allocates substantial funds for carbon capture technologies and expands customs exemptions across solar, nuclear, and battery storage ecosystems. Green Energy Corridor phases continue to support large scale renewable integration.
Read the report to gain in-depth insights on how the budget impacts India's real estate market.
