With the NDA emerging victorious in the 2024 Lok Sabha elections for the third consecutive term, the real estate sector is anticipating significant developments under the new government. Prime Minister Narendra Modi, in his speech following the election results, expressed a commitment to writing a chapter on “big decisions” in the third term.
The implementation of key policies such as the Real Estate (Regulation and Development) Act (RERA) and Goods and Services Tax (GST), along with national policies specific to logistic parks and data centres, has instilled confidence among various stakeholders in the real estate segment over the past decade. Additionally, initiatives like the National Infrastructure Pipeline and Gati Shakti National Master Plan are expected to further bolster infrastructure development across the country.
The real estate sector, being the second largest employment generator in India after agriculture, holds high expectations from the government.
Mr Amit Goyal the Managing Director of India Sotheby’s International Realty said
“The return of an existing government to power positively impacts the Indian economy and the real estate sector. Political stability significantly enhances confidence among both consumers and investors. We are a young country, poised to become the third largest global economy by 2027, and demand for homes is inevitably going to remain strong, now that we have stability on the policy front and continued focus on infrastructure development. The growing number of affluent in the country, particularly benefits the luxury segment of real estate and we expect the buoyancy to continue.
We do believe that several of the measures brought in by the BJP led government such as RERA need far more fine tuning, to be effective in spirit. NDA 3.0 will also be presenting the union budget soon, and this will be an opportune time to relook at GST burden on under-construction homes, and increase the tax breaks on home loans, to encourage wider home ownership.”
Shrinivas Rao, FRICS, CEO of Vestian said
“The real estate market sentiments are optimistic as the stock market is moving northward, especially the BSE Realty Index which has crossed 8,400, reaching the highest level since 2008. Furthermore, it has grown by 4-5% in the past five days on the back of positive expectations from the newly elected government.”
Mr. Rao added, “We expect the newly elected government’s uninterrupted focus on infrastructure development and a boost to affordable housing in the coming years. Moreover, the real estate sector should be allocated industry status to ease the availability of funds and increase the participation of foreign investors.”
Mr Badal Yagnik, CEO of Colliers India said
“The real estate sector expects continuation of structural reforms and policy support from the new Central government. 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 is inevitable if real estate sector is to reach a USD 1 trillion market, forming 13-15% of the country’s GDP by 2030.”
