Can the real estate industry’s strongest champion to date finish what he started?

Anuj Puri, Chairman – ANAROCK Property Consultants

Billions of Indians have given their verdict and the real estate sector has every reason to cheer. After all, the sector got the maximum policy-related attention during this government’s first tenure.

In retrospect, Modi’s victory in 2014 ushered in a new era of Indian real estate, unambiguously marked by his vision to set the ‘house’ in order.

He tightened the Centre’s grip on real estate – the favourite ‘laundromat’ for black money hoarders – and brought speculative activity to an all-time low even as big-bang schemes benefited genuine homebuyers and long-term investors.

His government gave a decisive impetus to all-around infrastructure development, major policy overhauls such as DeMo, RERA and GST, amended old Acts like Insolvency & Bankruptcy Code and the Benami Transactions (Prohibition) Act, and envisioned schemes like 100 Smart Cities, Housing for All by 2022, Make in India, AMRUT Cities etc.

Historically, no other government has done as much for the real estate sector. In just one tenure, Modi set the stage for Indian real estate to flourish in the long-term.

Anuj Puri, Chairman – ANAROCK Property Consultants

  • A new Government with a clear majority raised optimism in 2014
  • Nearly 5.45 lakh units launched in the year and nearly 3.43 lakh units sold – the previous year saw the launch of approx. 4.6 lakh units and lower sales
  • Long-term benefits of recent reforms will accrue only with the continuity of their enforcement by this or the next Government

During an impending general election, real estate stakeholders conjecture about their likely impact on the real estate market.

Conventionally, the period between the announcement of the election date until the final result day is a period marked by caution and hesitancy in the overall real estate market.

While investors generally refrain from making market plays in this waiting period, buyers may also adopt a wait-and-watch stance.

The reasons can vary from anticipation that a newly-elected Government may offer more sops to homebuyers to the hope that a re-elected Government may reward voters with such sops.

In this period, developers understandably prefer to focus on selling their unsold stock rather than launching new projects.