Amid every upcoming general election, real estate associates start to predict its effect on the real estate sector. Basically, the span amidst the election date’s declaration and the final result day is the time signified by caution and uncertainty in the entire real estate industry. Although investors usually avoid making market plays during this waiting span, buyers may go with a wait-and-watch viewpoint. However, the purposes can differ from the prediction that the homebuyers can get more offers from a newly-elected government to anticipation that the voters get rewarded with more sops from a re-elected government.
Impact of General Election 2019 on Home Buyers & Developers
During this election period, developers try to concentrate on selling their unsold stock instead of promoting new projects. This election time is significantly profitable for home buyers because they can negotiate with developers who look forward to selling units for more liquidation. In short, in this period, all associates wait for the ultimate result.
Undoubtedly, earlier, funds planted by political parties in Indian realty were used up for financing their poll campaigns. Presently, the market is encountering a serious reimbursement issue. Albeit now new laws possibly reduce the amounts which political parties can accept for donating in their campaigns, they certainly don’t cover every possible access avenue. Thereby, the span causing to the election could appear a hassle for the entire Indian Realty.
Post-election Policies & Macroeconomic Ambiance Decide the Indian Realty’s Future
The post-election macroeconomic ambiance will significantly decide the future of Indian Realty in 2019 and beyond. It demands a stable government for sure to keep the sector financially healthy and developed. Moreover, the present development rate should be maintained.
As per ANAROCK data, the earlier years experienced fewer launches and sales. It is to be predicted that the newly-elected government will come with a clear object, an enhanced strategy and increased optimism that will result in better sales and productivity and choosing new project launches.
Nevertheless, with the series of post-election policies which followed consequently, new promotion and sale numbers decrease year-over-year. Every new policy declared by the present government brought destruction to Indian Realty and the sector is still trying to recover from a confusing state.
Thereby, in spite of a stable government, the real estate sector, whether real estate properties in Pune, Mumbai, or other metro cities across India, needs some corrective changes to be applied favorably. These changes will help the sector reap some long-term benefits that will continue with this current government or the forthcoming government.