India’s real estate market is set for steady growth after supportive measures in the Union Budget 2026, according to a global brokerage. The firm has expressed confidence in the sector’s long-term prospects and named DLF and Embassy REIT as its preferred investment picks.
The brokerage said recent policy changes are likely to strengthen demand for commercial and industrial real estate, especially assets linked to Global Capability Centres (GCCs) and data centres. These segments are expected to benefit most from new tax and compliance incentives announced in the Budget.
One of the key measures is improved tax clarity and simpler compliance rules for GCCs. This is expected to encourage more multinational companies to expand operations in India. In addition, foreign companies setting up data centres in the country will enjoy a tax holiday until 2047. These steps aim to boost infrastructure creation and attract long-term foreign capital.
Developers with annuity-based assets and firms planning to monetise land for data centre projects are likely to gain the most. The brokerage highlighted DLF as a major integrated real estate player in both residential and commercial projects. As of January 2026, DLF had a market capitalisation of about ₹1.51 lakh crore and a P/E ratio of around 35.41x.
Embassy REIT, which focuses on income-generating commercial offices, hospitality, and renewable energy assets, was also identified as a top pick. It had a market capitalisation of nearly ₹41,600 crore and a P/E ratio close to 18.5x. Other developers in the space include Prestige Estates, Oberoi Realty, and Godrej Properties. In the REIT segment, peers include Mindspace Business Parks REIT and Brookfield India REIT.
The brokerage noted that limits on the use of Minimum Alternate Tax (MAT) credits could affect earnings in the medium term. However, it expects the long-term benefits from GCC growth and data centre expansion to outweigh this challenge.
Overall, the policy direction is viewed as positive for the real estate sector. The brokerage believes these structural changes will support sustained expansion and make the sector attractive for investors over time.
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