– by Akash Pharande, Managing Director – Pharande Spaces
As India gears up for its upcoming general elections, optimism and anticipation are evident across various sectors, and the real estate market is no exception. Historically, India's general elections have been a time for positivity – after all, every political party in the fray pledges to boost economic growth and improve infrastructure. These commitments invariably lead to a positive sentiment in the housing market.
How will the upcoming elections impact India's housing market, and why is this be the perfect time to make a home purchase? Let's examine.
Surging Investment Optimism
Election periods in India are typically marked by increased public spending and promises of economic reforms, which tend to boost consumer confidence and spending. A stable government and the implementation of favourable policies create an environment ripe for investment – especially in the real estate sector. To capitalize on this optimism, developers often launch new projects or offer attractive deals and discounts to homebuyers.
Policy Reforms and Infrastructure Development
Today, election manifestos emphasize infrastructure development and pledges to usher in structural reforms. The result of such measures is enhanced connectivity and improved urban infrastructure, which directly benefit the housing market by making homeownership more accessible and appealing.
The development of roads, public transport, and utilities boosts the value of residential areas, turning even peripheral areas into attractive investment options. In short, they will see price growth.
Improved Liquidity and Financing Options
In the run-up to elections, there is typically an increased focus on financial inclusivity and easing of credit conditions to stimulate economic growth. Banks and financial institutions often roll out special home loan offers, reduced interest rates, or more favourable terms to encourage home buying.
This increased liquidity and the availability of financing options make it easier for aspiring homeowners to take the plunge.
Favourable Regulatory Changes
The government's focus on housing and real estate development often leads to regulatory changes aimed at protecting buyers' interests and boosting the sector's growth. For example, the Real Estate (Regulation and Development) Act in 2016 was delivered by a new government elected in 2014, and it bought considerable transparency and accountability to the real estate sector.
Such policy reforms create a better environment for homebuyers and encourage investment in real estate. When such confidence-boosting reforms are implemented, we invariably see a rise in housing prices. Likewise, post-elections economic growth results in increased demand, which results in price growth.
However, in the period leading up to the elections, developers may often look to draw buyers with attractive prices, offers and discounts. This period can present a unique window of opportunity for investors and homebuyers to negotiate better deals before the anticipated post-election boom.
In short…
The period between now and the general elections is a strategic window for the opportunity to buy a home before prices rise. Moreover, the potential for property value appreciation post-elections signals significant returns on housing investment in the future.
Buying a home now, amidst the anticipatory positive trends, can not only secure a valuable asset but also leverage the market's upward trajectory post-elections. Historically, the real estate market's positive response to the general elections represents a strong connection between political milestones and economic growth.
There may no time like the present to take the plunge!
Akash Pharande is Managing Director – Pharande Spaces, a leading real estate construction and development firm famous for its township projects in West Pune and beyond. Pharande Promoters & Builders, the flagship company of Pharande Spaces and an ISO 9001-2000 certified company, is a pioneer of townships in West Pune.