In a significant endorsement from the real estate industry, CREDAI Visakhapatnam has warmly welcomed the Union Budget 2026-27, presented by Finance Minister Nirmala Sitharaman in the Lok Sabha. The organization described the budget proposals as progressive and highly supportive of both the real estate and infrastructure sectors, signaling a positive outlook for development in the region.
Policy Stability and Growth Measures
CREDAI Visakhapatnam emphasized that the budget's continued thrust on affordable housing and infrastructure-led development, particularly with expansions across tier 1 and tier 2 cities, demonstrates policy stability and a long-term intent from the government. According to E Ashok Kumar, president of the CREDAI Visakhapatnam chapter, the emphasis on reforms and growth measures strengthens confidence across the entire real estate value chain. He noted that this aligns perfectly with the broader vision of a developed India, fostering an environment conducive to sustainable growth.
Key Announcements: Infrastructure Risk Guarantee Fund
One of the standout announcements in the budget, as highlighted by Ashok Kumar, is the proposed infrastructure risk guarantee fund. He explained that this initiative is crucial as it offers calibrated public credit guarantees to lenders during high-risk construction phases. By addressing a major project financing challenge, the government aims to improve lender confidence and encourage greater private participation in housing and infrastructure projects. This move is expected to streamline financing and reduce bottlenecks that often delay large-scale developments.
Improved Access to Capital and Private Investment
Ashok Kumar further elaborated that improved access to capital and smoother credit flow could significantly reduce financing obstacles. He pointed out that the policy direction shows a clear intent to attract private investment and create an enabling environment, rather than relying solely on public spending. This approach is seen as a strategic step to boost economic activity and ensure timely completion of projects in the real estate sector.
Asset Monetisation and Urban Development Focus
CREDAI Visakhapatnam also welcomed the budget's push for asset monetisation, especially steps to accelerate the recycling of real estate assets held by Central Public Sector Enterprises through rights-based structures. Ashok Kumar stated that unlocking value from underutilised public assets can release capital for new investments and ensure better utilization of existing land and built infrastructure. This could lead to more efficient resource management and spur further development.
On the urban development front, the body noted that the sharper focus on tier 1 and tier 2 cities is timely. As urbanisation expands beyond major metros, this focus could support balanced regional growth, ease pressure on large cities, and create new centres for housing, employment, and infrastructure. This strategic shift is expected to foster inclusive development and address urban sprawl challenges.
Overall Confidence and Implementation Key
Overall, CREDAI Visakhapatnam expressed that the budget builds confidence among developers, lenders, and investors. The organization added that effective implementation will be key to sustaining momentum in affordable housing, infrastructure expansion, and asset monetisation in emerging urban markets. With these measures, the budget is poised to drive growth and stability in the real estate sector, contributing to India's economic progress.
