Real Picture of Real Estate Market of India Owing to Lok Sabha Elections

Picture of Real Estate in Post-election Period

Initially, if we observe the scenario of election, we will notice that, real estate sector tends to get slower during the election. The real estate players get cautious because of the controversial political situation of the country due to changes in the policy. The successful dealing transaction becomes very less and investors like to switch onto ‘wait and watch’ approach. 

According to the experts, the impact of election directly does not affect the end-user. For example, if a project is located in a populated area, the infrastructure is already developed, the price of the property is at its right place, then election will not affect, the homebuyers must buy the property.

According to the report of Anarock, “A healthy absorption to supply ratio of 1.02 in 2022 has touched 1.17 in Q1 2024. With controlled launches and rising sales, especially in the high end and luxury segments, leading to a drop in unsold inventory, have resulted in a rise in prices as well”.

According to Chairman, ANAROCK Group, Anuj Puri, the residential real estate will attain a new height by the end of 2024, which implies that, the homebuyers are very much optimistic about the real estate sector of India, so they are investing their hard earned money in it.

Major players in the realm of Real Estate, Sobha, DLF, Prestige Group, Macrotech Developers, Godrej Properties, all have clocked a record sales booking, ranges between Rs. 12,000 crore and Rs. 15,000 crore by the end of previous fiscal year and they are hopeful that, the fiscal year 2024-25 will bring more prosperity in this sector. The market report says that, the price of real estate will raise 8-10% more.

Furthermore, the growth of real estate in India is majorly inclined towards branded and trusted developers, which is helping them to aggressively increase their land bank for scaling further height. The rise of middle class segment where, maximum of the members are earning, gave a sudden push to the growth of real estate.

Amit Goyal, Managing Director, India Sotheby's International Realty, mentioned that, “the re-election of the standing government has a greater impact on Indian Economy as well as the Real Estate sector of India. A politically stable society remarkably boosts the confidence of both the consumers and investors”.

The CEO of Colliers India, Badal Yagnik, mentioned that, “the real estate sector has gone through structural reforms and policy backing from the incoming Central government”

He also added that, “RERA & GST implementation, national policies specific to logistic parks & data centers and overall infrastructure push in the form of National Infrastructure Pipeline & Gati Shakti National Master Plan have instilled a sense of confidence amongst various real estate stakeholders in the last decade. These long-term measures to balance growth while maintaining fiscal discipline will be pivotal to drive equitable public & private investment in the economy. A progressive and an economically viable vision are inevitable if real estate sector is to reach a $1 trillion market, forming 13-15% of the country’s GDP by 2030.”

Last Note

The real estate market in India represents an ever evolving landscape which offers diverse opportunities for homebuyers as well as investors. By carefully considering the investment goals, risk tolerance, and conducting thorough research, you can capitalize on the potential of this dynamic sector.

The major players of real estate are eyeing on rapid urbanization, sustained economic growth, government efforts, foreign investments, technology advancements, and gradually they are shifting consumer dynamics.

The time of selling the unsold inventory has been dropped by 1/3 as compared to previous fiscal year. All these indicate a bright and colorful future of Indian Real Estate. Reports say, if it continues to propel in such a way, it may reach $5.8 trillion by 2047 from $477 billion last year.