As India prepares for the Union Budget for the 2026–27 financial year, policymakers are expected to focus on sustaining economic growth while strengthening domestic resilience amid continued global trade tensions and geopolitical uncertainty, according to real estate consultancy Colliers India.
The firm says the budget is likely to strike a balance between fiscal discipline and growth-oriented reforms, with housing, infrastructure, manufacturing and sustainability emerging as priority areas. Measures supporting digital platforms, data infrastructure and artificial intelligence are also expected to feature prominently.
Housing and infrastructure are seen as central to the government’s growth strategy due to their strong multiplier effects on employment, consumption and urban development. Colliers suggests that revisiting the definition of affordable housing and improving access to credit could help sustain residential demand, while higher infrastructure spending could unlock new growth corridors across cities.
India’s real estate sector maintained strong momentum through 2025, supported by robust economic growth and steady investor confidence. Office leasing crossed 70 million square feet during the year, while industrial and warehousing demand remained firm. Residential markets showed resilience despite rising costs, aided by improved connectivity and changing lifestyle preferences. Institutional investments reached about $8.5bn, among the highest levels in recent years.
Colliers expects targeted support for affordable housing to feature in the upcoming budget. On the demand side, it points to the need for revising the current ₹45 lakh threshold for affordable housing, extending interest subsidy schemes for first-time buyers and simplifying home loan portability. On the supply side, increased funding for stalled projects under government-backed schemes and renewed tax incentives for developers could help address persistent shortages.
Infrastructure-led development is also expected to remain a key focus. Higher allocations for logistics parks, freight corridors, rail networks and ports could improve supply-chain efficiency and support manufacturing growth, particularly in smaller cities.
Sustainability is likely to be another priority, with potential incentives for renewable energy, electric vehicles and green buildings. Colliers says such measures could encourage cleaner construction practices while supporting long-term, climate-resilient growth.
Badal Yagnik, Chief Executive Officer of Colliers India, said the budget had the potential to strengthen investor confidence and support long-term expansion across real estate and infrastructure-linked sectors.
