Union Budget 2026 Sets the Stage for Green, Premium Real Estate Growth

Lakshmi Narayana G, Designated Partner, GHR Lakshmi Urbanblocks

The Union Budget 2026 sends a clear signal to the real estate sector: sustainability, capital efficiency, and investor confidence will define the next phase of urban growth.

By reducing project risk and encouraging institutional capital, the Budget strengthens the foundation needed for premium and sustainable housing—particularly in fast-growing markets such as Hyderabad. This policy direction is critical as cities expand beyond core limits into high-potential corridors.

A notable shift is the government’s push for Green Credits and sustainable construction technologies, including dry construction methods and recyclable materials. These measures align environmental responsibility with long-term cost efficiency. Supporting this transition, the Construction and Infrastructure Equipment (CIE) scheme promotes energy-efficient equipment and modern lift systems—essential for the next generation of high-rise developments.

On the demand side, simplified NRI compliance, especially PAN-based TDS without the need for a TAN, significantly lowers entry barriers for overseas investors. This reform improves ease of doing business and enhances India’s credibility as a global real estate destination.

Equally important is the Budget’s emphasis on sustainable urban renewal across housing segments—from mid-income to premium—backed by credit guarantees and process simplification. Growth corridors such as Kokapet and Neopolis in Hyderabad stand to benefit the most, enabling developments that integrate smart technologies, global certifications, and future-ready amenities.

From a premium developer’s perspective, the real opportunity lies in building integrated townships that balance density, sustainability, lifestyle, and long-term livability—ensuring equitable growth for both developers and homebuyers while meeting rising aspirations for high-quality urban living.