Stable Goverment And Its Impact On Real Estate

Different approaches, ideologies, and innovations always help us grow.  Assimilation different real estate policies and concepts to create transformative designs or achieve great outcomes.

However, this is only applicable and appropriate in some places because sometimes different and multiple real estate policies lead to unorganised and unsustainable results. Physical infrastructural development is a sector that can only accept some ideologies and innovations and that too only with stable goverment. It is necessary to have a harmonious relationship between different ideologies to get better and innovative ideas in order to keep growing with something new and more efficient, but this is not always true.

Adverse Effects Of A Unstable Government 

A stable government has one way of thinking towards development and planning. They have clear real estate development policies with no disputes and contradictions within their cabinet. They can quickly implement their development plans with utmost efficiency. For instance, suppose there is a xyz government in the rule and their policies and approach towards infrastructural development are different. One day the government changed, and the new government stopped or procrastinated all the ongoing policies and projects for an indefinite time as it did not favour their way of thinking. It impacted the whole development plan made by the previous government. This resulted in:

       •  Delayed Development 
       •  More Money Infusion
       •  More Exploitation Of Natural Resources 
       •  Increase In Pollution 
       •  Less Viability 

And what if the government again gets changed while all the development plans are ongoing? Again, the whole process will be repeated, and development will be nothing but a word. Have you ever wondered why the government made the Right To Property a legal right from the fundamental? Because it provides us with undelayed and fast development and avoids time-consuming legal disputes that become an obstacle in infrastructural development. 

How Will BJP's Return in Government Benefit the Real Estate Sector In India?

The return of the Bharatiya Janata Party (BJP) to power can potentially benefit the real estate sector in several ways. Here's how:

1. Policy Continuity: The BJP's return ensures continuity in policies related to real estate. This stability is crucial for investors and developers as it provides a predictable environment for business operations and investments.

2. Infrastructure Development: The BJP has emphasized infrastructure development in its agenda, including initiatives like the Smart Cities Mission and Affordable Housing for All. These projects drive demand for real estate, particularly in urban areas, leading to increased construction activity and property transactions.

3. Regulatory Reforms: The BJP government has introduced several regulatory reforms aimed at streamlining the real estate sector, such as the Real Estate (Regulation and Development) Act (RERA) and the Goods and Services Tax (GST). These measures promote transparency, accountability, and ease of doing business, which are beneficial for both buyers and developers.

4. Boost to Affordable Housing: The BJP has shown a commitment to promoting affordable housing through various schemes and incentives. This focus on making housing accessible to the masses not only addresses a pressing social need but also opens up new opportunities for developers to cater to this segment of the market.

5. Foreign Investment: The BJP's pro-business stance and efforts to improve the ease of doing business in India can attract foreign investment in the real estate sector. Increased foreign investment can inject capital, technology, and expertise into the industry, driving growth and innovation.

The return of the BJP to power can instill confidence in the real estate market, stimulate investment, and foster growth, thereby benefiting stakeholders across the sector. However, the actual impact will depend on the effective implementation of policies and continued efforts to address challenges faced by the industry. 

Revolutionary Changes By Current Government For Real Estate

Real Estate (Regulation and Development) Act (RERA):
1. RERA was enacted in 2016 to regulate transactions between buyers and promoters of residential real estate projects.
2. It establishes Real Estate Regulatory Authorities (RERAs) in states to oversee real estate transactions.
3. Promoters can only book or offer residential real estate projects for sale by registering them with RERAs.
4. Real estate agents also need to register under RERA.

Affordable Housing Initiatives:
1.The government has focused on promoting affordable housing.
2. Pradhan Mantri Awas Yojana (PMAY) aims to provide affordable housing for all by 2022.
3. Incentives such as interest subsidies for home loans are provided to eligible beneficiaries.

Infrastructure Status for Affordable Housing:
1. The government granted infrastructure status to the affordable housing sector.
2. This allows developers to access long-term funding at lower interest rates.

Goods and Services Tax (GST) Rationalization:
1. The implementation of GST streamlined taxation in the real estate sector.
2. It replaced multiple indirect taxes, making transactions more transparent.

REITs (Real Estate Investment Trusts) Regulations:
1. The government introduced regulations for REITs.
2. REITs allow investors to invest in income-generating real estate assets.
3. These regulations ensure transparency, liquidity, and investor protection.

Benami Transactions (Prohibition) Act:
1. The government strengthened the Benami Transactions Act to curb black money in real estate.
2. It prohibits transactions where the property is held by someone other than the person who paid it.

Ease of Doing Business Reforms:
1. The government focused on improving the ease of business in the real estate sector.
2. Streamlined approvals, single-window clearances, and digitization have been emphasised.

Smart Cities Mission:
1. The Smart Cities Mission aims to develop 100 smart cities across India.
2. It includes infrastructure development, urban planning, and sustainable real estate projects.

Land Acquisition Reforms:
1. The government introduced reforms to simplify land acquisition processes.
2. This facilitates infrastructure development and real estate projects.

Credit-Linked Subsidy Scheme (CLSS):
1. CLSS provides interest subsidies on home loans for economically weaker sections (EWS) and middle-income groups (MIG).
2. It encourages homebuyers to invest in real estate.

These policies and regulations demonstrate the government's commitment to promoting transparency, affordability, and sustainable growth in the real estate sector.

Conclusion 

The constant change in the government and policies has an immensely negative impact on development as it needs stable goverment to support suitable growth. The government must be stable to support better and more efficient development plans.