Budget 2026-27: Tier-2, Tier-3 Cities Poised for Real Estate Boom

• The Budget 2026-27 focuses on developing Tier-2 and Tier-3 cities, aiming to transform them into climate-resilient economic hubs like Pune and Bengaluru.
• Increased allocation of Rs 12.2 lakh crore for infrastructure development (roads, railways, logistics parks) will boost industrial activity and real estate demand in smaller cities.
• Affordable housing schemes and easy financing, coupled with lower land costs, will make homeownership more accessible for the middle class and first-time buyers in these cities.
• Promoting MSMEs, startups, and manufacturing will create local employment, reducing migration to metros and strengthening local housing demand.
• Urban development schemes like Smart City Mission and AMRUT will continue to enhance infrastructure, creating a favorable environment for long-term real estate growth.

Why It Matters: Budget 2026-27 prioritizes Tier-2 and Tier-3 cities, driving real estate growth through infrastructure and affordable housing.