Real Estate post elections: Impact on real estate

Q: We believe that there will be lot of improvements going to happen in the Infrastructure sector. Also Increase in stock market and rupee appreciation is expected. So what can be the possible impacts of the new government on the Indian real estate market in the time frame of 6 to 12 months.

What do you think of modi-fied real estate ideas ?

Neha Srivastava, Delhi-NCR

20th May 2014

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Replies (12)

I feel a good infrastructure such as good roads, express corridors, SEZs, electricity, water supply and mass transportation facilities such as BRTS, metro and monorails will boost up soon. Many developers are hoping that the new Prime Minister will be able to improve the infrastructure across the country, the same way he did it in Gujarat.

Pranab Malakar,

28th May 2014

Comment

Guys I feel since the expectations are high, one must realize that no government will be able to implement all the policies within a short period.

Sudhakar , Chennai

28th May 2014

Best opportunity for noida ,noida extension, delhi ncr,,,,wait Millions of people are now eyeing for the promises and talks made by Modiji to be live.He had also promised that, At the end of 2019 he will come up with a development report where all the development and works done will be mentioned and it will conveyed to every Indian.The real estate body of Noida

Naveen Sinha, Apartment Resident

22nd May 2014

Comment

Yes Naveen, also we expect lot of infrastructure will happen, the productivity of existing road-rail infrastructure will improve.

I also foresee healthy growth of the hospitality sector, as the new government has a clear mandate to uplift tourism across various regions. Its focus is to build 50 tourist circuits with provision of affordable hotel amenities. With higher investments flowing into the economy, the rupee will gain strength.

Vivek Kulkarni,

26th May 2014

The news "New govt should give top priority to land acquisition" shows how important real estate sector is for India. All sectors in India are hoping for the best from the New Govt. The impacts may be slow in first 12 months but sure New Govt will achieve milestone and improve Indian economy in 5 years rule.

Yash Hegde,

22nd May 2014

Comment

Hey guys I think It is the first time in Indian history where there are more concerns,talks and focus on economic development, infrastructure built-in, and new policies. The NaMo factor is definitely going to revive India from the social stigmas. Millions of people are now eyeing for the promises and talks made by Modiji to be live.He had also promised that, At the end of 2019 he will come up with a development report where all the development and works done will be mentioned and it will conveyed to every Indian.The real estate body of Noida has sent a proposal to Narendra Modi to implement a single window clearance system for new projects to bring in greatertransparency.
Hence a lot things are to be done. ;)

Ambit Kumar Mishra, Apartment Resident

21st May 2014

Comment

Yes Ambit, I think the government should also re-work on the real estate regulatory framework so as to enable the speedy completion of infrastructure projects. Besides, there should also be transparency in government actions through their websites so that all the stakeholders involved are aware of them.

Aneek Das,

28th May 2014

The major problem facing by real estate now is the delay in the process of approvals and land acquisition.
and the other is the major chunk of proposed infrastructure projects are stuck in delivery.

So I think these issues should be considered for real estate development in the modi-fied India.

Vishal, Apartment Resident

21st May 2014

Comment

Due to Modi leading a stable govt, the prospects of policies being implemented without any hurdles is good. There are a lot of expectations held by the real estate sector from the Modi govt:

- Fast tracking all pending infrastructure projects especially those that have been in the limbo for a long
- Bringing in 100 per cent FDI in real estate
- Giving industry status to the sector
- Introducing the RE Regulation bill
- Reduction in construction costs
- Streamlining clearances
- Better transparency in govt decisions

Ranjan, Apartment Resident

21st May 2014

Comment

It is not just modi-fied real estate but it will be modi-fied India. According to a news source, there is a current shortage of around 18.78 million house and BJP targets by 2022 a house for every family in India. This states clear that Real estate is one of the key focus areas of New Govt.
Hence, we can expect the growth of real estate, development of roads and infrastructure.

Rakesh HP, Apartment Resident

21st May 2014

Comment

One thing that can be expected is the improvement in the infrastructure, especially road, electricity and water in most of the cities. Modi has also promised that he will create 100 cities. An improvement in infrastructure and employment opportunities will directly lead to the growth in demand for housing in the particular macro and micro market. As such, there can be expected, an increased supply and demand for residential projects.

Dakshayani Ganesh,

21st May 2014

Comment

I hope the the new 'Modi'fied government will invest in R&D of each and every sector and establish many research institutions with proper funding. This will help in improving the technology and innovation in each and every sector. It will generate a lot of well-skilled employment opportunities, stabilizing the economy. The major advantage with this is that these institutions will help in formulating better policies for the greater good of the society without any western interest.

Sannihith Tunuguntla,

21st May 2014

Comment

Yes Sannihith even I believe many more research insititutions will come up. Also new industries that will create employment oppoprtunities that in turn will boost the housing demand. :)

Vivek Kulkarni,

21st May 2014

Very well said Priyanka. :) Also Infrastructure development holds the key for real estate growth. If Gujarat growth model is replicated and infra development is initiated as promised then Modi's dream to build 100 cities will effectively come true. This will have a positive impact on the Indian real estate market.

Supratim,

21st May 2014

Comment

I think next 5-6 quarters are expected to be the game changers. Availability of funds will ease and interest rates are expected to come down as inflation cools. This will have a direct impact on the supply side of the real estate.

Rubiya,

21st May 2014

Comment

With a stable govt in power, the sentiments of property buyers have definitely got an uplift but it is far too early to predict the real impact of Modi-fied govt. While we hope the best to happen for the sector, a lot depends on how well the policies are initiated and planned. Large pile of inventories across the cities may get reduced to some extent but what remains to be seen is how the Real Investors will behave in the month to come. They have largely exited from realty in 2013 but now if they re-enter the market then prices will definitely pick up.

Priyanka Kapoor,

21st May 2014

Firstly it is not dependent on coalition partners will hopefully mean faster decision making and economic reforms.

Secondly If GDP growth picks up, one of the early beneficiaries would be the real estate industry.

Thirdly a stable government will lift the sentiments of the investor community who form a dominant role which will impact housing and office sales. Hence, both end-users and investors are also expected to increase their investments in the sector and contribute to its growth.

Gurmeet,

21st May 2014

Comment

I beileve for real estate sector we expect efficiency in approval process and easier bank funding which are the two major concerns for the industry.

For the real estate in particular, we firmly believe that the sector will be given industry status this time which will ease all fund inflow.
In order to boost affordable housing, the new government may look at helping on quicker
1) land acquisition
2) faster approvals
3) easy and low cost funding availability and better infrastructure.

Pranab Malakar,

21st May 2014