Impact Of 2024 Lok Sabha election On Indian Real Estate 

Lok Sabha elections results are on the way, and everyone is worried about its impact on the Indian real estate market. Real estate is same as share market; it is also dependent on market sentiments and which political party takes over the country. 

Generally, it is expected that a stable government helps to maintain the market sentiments high as a stable government helps to maintain better uniform policies and sustainable growth without any interruptions from other MPs and ministers, than in a collision government. Let's assess the market sentiments and the factors that will affect real estate market after the general election of 2024.

General Election 2014 And 2019

It was seen in the Lok Sabha elections of 2014 that before the election, the real estate market had been going down. There was a dip in the real estate market as investors and buyers were waiting for some stability and where the market would approach. The same will happen in the general election of 2024

In 2014, the top 7 cities in India had an approximately 30% drop in home sales. But don’t be confused, as it is just till the election results are out. The same sentiments were seen in Lok Sabha elections 2019 as investors and potential buyers waited to see if there was a stable government and also a government that believed in rapid infrastructural boost.

Election Impact On Real Estate

Generally, the market recovers when the results are out. There will be clarity regarding the government policies, and the customers will have confidence restored. Elections often spark a significant rebound in the housing market due to clear government policies and restored consumer confidence.

For instance, after the 2014 elections, the market saw a notable upturn. Reports indicated a nearly 50% increase in sales in the following months, driven by positive consumer sentiment and increased investment. Similar trends emerged after the 2019 elections, with political stability supporting market momentum. 

Additionally, confidence in the Real Estate (Regulation and Development) Act (RERA) played a vital role. By the end of 2019, the market witnessed a surge in new investments, not only in residential properties but also in commercial real estate. 

Elections Impact On India Housing Market

The Indian housing market has displayed strength amidst uncertainty preceding the  Lok Sabha elections this year. The current government's efforts to boost housing demand, infrastructure development, and economic reforms have strengthened confidence. The anticipation of the government's continuity has shielded the market from the usual pre-election slowdown.

Following the elections, the housing sector in India is poised for growth. Market sentiments are optimistic, contingent upon the government's ability to maintain policy stability and ensure economic security. Expectations are high that forthcoming regulations may moderate the Goods and Services Tax (GST) on building supplies, providing a significant boost for developers and customers alike and potentially denying property price hikes.

Moreover, there's hope for improved access to financing in the housing sector, with affordable housing possibly regaining priority status for the government. These developments are expected to contribute to a positive revolution in the housing market dynamics.

For investors, the post-election period presents promising opportunities in residential real estate. As the government introduces more measures to boost the market and reinforce economic stability, real estate investments are likely to yield substantial returns through price appreciation and elevated demand. These opportunities align well with the increasing digitization and transparency in real estate transactions.

Investors can capitalise on these opportunities by

1. Staying Informed: Keeping abreast of government policies, regulatory changes, and market trends is crucial for making informed investment decisions. Understanding how policies impact the housing sector can help investors anticipate market movements.

2. Diversifying Portfolios: Investing in a diversified portfolio of residential properties can mitigate risks and maximise returns. Different types of properties in various locations offer stability against market fluctuations.

3. Adapting to Market Changes: Being flexible and adaptable to evolving market conditions is essential. Investors should adjust their strategies in response to changes in government policies, interest rates, and economic indicators.

4. Leveraging Technology: Embracing technology can facilitate investment processes and enhance transparency. Utilising digital platforms for property research, transactions, and portfolio management can improve efficiency and reduce costs.

5. Seeking Professional Advice: Consulting with real estate experts, financial advisors such as commercial noida, and legal professionals can provide valuable insights and guidance. Professionals can offer personalised recommendations tailored to investors' goals, risk tolerance, and financial situation.

Conclusion

The post election impact on real estate in India presents promising prospects for investors in residential real estate. By staying informed, diversifying portfolios, adapting to market changes, leveraging technology, and seeking professional advice, investors can capitalise on the opportunities and navigate the evolving landscape effectively.