Major anticipation can be seen in the real estate sector which almost every time gets significantly affected during the pre and post-election time.
The biggest Indian ‘Festival of Democracy’, General Elections 2019, is here. While elections have always played a significant role in the economy and infrastructural development of the country, growth of major sectors and industries is also directly dependent on the same.
However, major anticipation can be seen among the Real estate sector which almost every time get significantly affected during the pre- and post-election time. It is that time when most of the developers as well as realtors get nervous, excited and waits anxiously to comprehend the possible outcome as well as its impact on the overall market.
On the other hand, the buyers also get confused about whether to invest in a project or not. Going back to the past, the general elections of 2014 has significantly changed the dynamics of the realty market. The entrance of a new government raised optimism among the developers as well as homebuyers that something new and excited will take place.
Formation of new reforms and policies like RERA, GST, strict insolvency law and affordable housing have not only enhanced buyers sentiments in the property market but also took a strict note on the unscrupulous builders and developers duping buyers from the ages. This led to a transparent and organised realty market where there was an increase in both demand and supply of housing as well as commercial units.
Coming back to 2019 general elections, the market leaders as well as the stakeholders are moving forward but with a cautious and hesitant step as they are in dilemma about the result. The home buyers are also following a wait and watch approach while investing in a new property. The reasons vary as everyone has their own expectations. The stance says that a fresh government may offer new concessions to them or that a re-elected government may reward the sector with more developmental policies leading to the long-term benefits.
For developers as well as realtors, the election time is all about reaping more benefits in the unsold inventories segment. History says that the property market gets softened during the pre-election time and then picks up momentum again after the announcement of the results. Developers behest themselves from launching new projects and the reasons vary as per anticipation. A stable re-elected government may not take much time in clearing the policies as the power is in their hands once again, on the other hand, a newly elected unstable government need time to understand the old policies and reforms that may become critical for the realty market growth. Because of this, there may be a slowdown on the supply front.
The Indian Real estate market is waiting with bated breath as the outcome of the 2019 general election may hit them directly or indirectly. A re-elected government may overshadow the pre and post-election effect as they have already understood the market sentiments. On the other hand, a newly-elected government may work with a fresh ideology that can lead to sluggishness in the sector for quite some time as the developers, homebuyers as well as stakeholders will take their time to adapt with the changes.
In my point of view, the stern norms by the current government have already solidified the sector like never before. Let’s keep the fingers crossed and welcome a stable government at the Centre so that the sector once again sees a healthy and wholesome growth for a longer period of time.
(By Honey Katiyal, Founder & CEO, Investors Clinic)
Disclaimer: The views and opinions expressed in this article are those of the author.