Real estate developers in West Bengal have broadly endorsed the Union Budget 2026’s emphasis on infrastructure-led growth, but caution that the absence of targeted housing measures could deepen structural stress in the state’s residential market. While higher public capital expenditure is expected to improve regional connectivity, industry stakeholders warn that affordable housing risks further contraction without policy recalibration.
The Budget has raised public capital expenditure to Rs 12.2 lakh crore, reinforcing government focus on highways, metro rail systems, logistics corridors and urban infrastructure. For eastern India, developers say this signals long-term opportunity, particularly for Tier-2 and Tier-3 cities that have historically lagged in large-scale public investment. Improved connectivity is expected to unlock new urban corridors, reduce travel times and attract commercial activity beyond established city centres. However, industry representatives in West Bengal argue that infrastructure momentum alone cannot compensate for persistent gaps in housing policy. Developers point to rising land prices, higher construction costs and tighter compliance requirements that have steadily eroded the viability of affordable housing projects. Without revisions to pricing thresholds, unit size norms and fiscal incentives, the segment’s share in overall housing supply is projected to decline further. Urban economists note that a sustained reduction in affordable housing has broader civic implications. As formal housing options shrink, rental pressures tend to rise, commute distances increase and informal settlements expand along urban peripheries. These outcomes, they argue, undermine the very objectives of infrastructure investment by placing additional strain on transport networks and municipal services.
The Budget’s silence on tax relief for homebuyers, rationalisation of indirect taxes on construction inputs, and recognition of real estate as a formal industry has also drawn concern. Developers say these measures could have reduced project timelines and financing costs, particularly for mid-income and entry-level housing that caters to the city’s workforce. At the same time, the industry has welcomed several financial architecture reforms announced in the Budget. Proposals linked to asset monetisation, infrastructure investment trusts and risk-sharing mechanisms are expected to improve access to institutional capital. Analysts believe these tools could support large commercial and mixed-use developments, especially in urban renewal zones and emerging economic clusters. The allocation for City Economic Regions has drawn particular attention in eastern India. With dedicated funding for integrated urban-industrial planning, developers see potential for more balanced growth across districts rather than continued concentration in a few metropolitan pockets. If implemented effectively, such regions could align jobs, housing and transport within a single planning framework.
Looking ahead, planners argue that West Bengal’s urban growth will depend on synchronising infrastructure expansion with housing affordability. While roads and rail can open new corridors, the absence of inclusive housing policy risks deepening spatial inequality. As cities across the state prepare for the next phase of expansion, the challenge will be ensuring that infrastructure-led growth translates into accessible, resilient and people-centred urban development.
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