Union Budget 2026: Real Estate Developers Look for Deeper Alignment Between Infrastructure Spend and Urban Growth

New Delhi: As India prepares for Union Budget 2026, expectations from the real estate and urban infrastructure sectors are converging around a common theme: tighter integration between public infrastructure investment and private city-building. After years of strong capital expenditure on roads, railways and logistics, developers are now looking for policy signals that link connectivity, sustainability and real estate demand into a coherent urbanisation strategy.

Industry stakeholders argue that the next phase of growth will be defined not merely by asset creation, but by how infrastructure shapes liveability, sustainability and economic activity within cities. From transit-oriented development and green construction incentives to streamlined approvals and ESG-aligned financing, Budget 2026 is being seen as a moment to recalibrate urban policy for long-term impact.

Sharat Ventrapragada, designated partner at GHR Lakshmi Urbanblocks Infra LLP, said the upcoming Budget could play a decisive role in aligning infrastructure investments with next-generation urban development models.

“As a developer of integrated, sustainable urban ecosystems, we see Budget 2026 as a pivotal moment to bridge infrastructure investment with next-generation city-building. Continued capex on transit corridors, green public spaces and digital urban infrastructure will create the perfect foundation for mixed-use developments that blend live, work and leisure seamlessly,” Ventrapragada said.

He added that developers are looking for clearer policy backing for transit-oriented development, green building incentives and faster single-window clearances to reduce execution friction.

“Incentives for low-carbon construction, water recycling and energy-efficient design will enable projects like Cascades Neopolis to set new benchmarks in sustainable urban living. This Budget has the chance to unlock private capital for smart cities and growth hubs by aligning infra spend with real estate demand,” he said, pointing to the importance of land monetisation, ESG financing and urban renewal frameworks.

From a premium housing and lifestyle development perspective, industry leaders say infrastructure quality is increasingly the key differentiator in residential value creation. Karteesh Reddy, CEO of GHR Infra, said Budget 2026 presents an opportunity to reinforce the infrastructure–real estate link more deliberately.

“For premium and lifestyle-focused developments, infrastructure is the real value multiplier. High-quality transport links, social infrastructure and green standards directly elevate living experiences,” Reddy said.

He noted that stronger policy support for sustainable construction and energy-efficient design would allow developers to scale the adoption of low-carbon materials, smart home technologies and water conservation measures without compromising on comfort or aesthetics.

“We also expect continued support for peripheral corridors where premium housing meets improving connectivity. Measures such as viability gap funding for metro extensions and tax benefits for energy-efficient buildings can create a virtuous cycle of premium supply, rising aspirations and economic multipliers,” he added.

Developers focused on integrated townships and emerging micro-markets echoed similar expectations, emphasising predictability and policy stability. Ajitesh Korupolu, founder and CEO of ASBL, said connectivity, liveability and sustainability must remain central to the Budget’s urban agenda.

“As a new-age infrastructure and real-estate developer, we expect Budget 2026 to keep its focus firmly on city-level infrastructure—roads, metro corridors, civic assets and water management—which directly shape quality of life and support integrated township development,” Korupolu said.

He underlined the importance of a predictable regulatory environment, particularly in land approvals, taxation and single-window systems, to enable long-term planning and better-designed communities.

“Budget 2026 is an opportunity to create synergies between infrastructure spending and real estate demand. By prioritising transit-oriented development and sustainable urban planning, the government can unlock private investment in live-work-play ecosystems that create jobs, drive consumption and build inclusive cities,” he said.

As urban India continues to expand, developers believe the focus must now shift from isolated infrastructure projects to coordinated urban systems that integrate transport, housing, sustainability and economic opportunity. Budget 2026, they argue, will be closely watched not just for headline allocations, but for the policy architecture that determines how India’s cities grow in the next decade.