BENGALURU, Feb. 1 -- The Union budget 2026-27, presented by finance minister Nirmala Sitharaman on 1 February, has proposed setting up real estate investment trusts (Reits) to recycle and monetize land and property holdings owned by central public sector enterprises (CPSEs), signalling a shift towards market-linked management of government real estate assets.

The proposal to monetize large, under-utilized prime assets through Reit structures is aimed at unlocking long-term value from mature public land holdings, while improving balance-sheet efficiency at state-owned firms.

By positioning Reits as a key mechanism for asset monetization, the budget reinforces their growing role in India's infrastructure and urban financing ecosystem, the...