Polls & Property: Anticipating a peak in Indian Real Estate for Election Year 2024
As the political landscape of India gears up for the General Elections in 2024, the anticipation in the residential Real Estate market is palpable. With past election years serving as indicators, there’s a strong inclination towards another peak in housing sales and launches. Let’s delve into the factors driving this optimism and the trends shaping the trajectory of the market.
Anticipating Another Peak: Insights from Past Election Years
In both 2014 and 2019, India witnessed surges in housing sales and launches amidst the backdrop of General Elections. The decisive election results instilled confidence among homebuyers, leading to a surge in demand. In 2014, approximately 3.45 lakh units were sold and 5.45 lakh new units were launched across the top 7 cities. Similarly, in 2019, despite a slowdown in the sector between 2016 and 2019 due to policy reforms and the NBFC crisis, there were around 2.61 lakh units sold and 2.37 lakh units launched.
Factors Fuelling Optimism for 2024
Regulatory Reforms and Positive GDP Projections
One of the key drivers of optimism is the implementation of robust regulatory reforms in the real estate sector. Measures like RERA and GST have brought about much-needed transparency and accountability, attracting organised players and bolstering confidence among homebuyers. Additionally, international organisations like the IMF have projected strong GDP growth for India in the coming years, indicating a favourable economic climate for real estate investments.
Developer Dynamics: Clean Balance Sheets and Expansion Strategies
Developers are playing a pivotal role in shaping the market dynamics. With clean balance sheets and growing homebuyer demand, developers have been closing substantial land deals and venturing into new territories to expand their presence. This influx of organised players into the market further strengthens confidence among buyers and investors alike.
Impact of Structural Reforms
Major structural reforms like Demonetisation, RERA, and GST, introduced between 2016 and 2017, have transformed the Indian real estate landscape. These reforms have led to the exit of unreliable developers and the emergence of organised players, instilling trust and confidence among homebuyers. The transition from an unregulated market to a more organised one has contributed to the sector’s revival and stability.
Price Trends and Market Resilience
While examining price trends in past election years, it’s evident that 2014 witnessed a stronger performance compared to 2019. However, despite fluctuations and challenges faced between 2016 and 2019, the residential real estate sector has shown remarkable resilience. The initial signs of revival post-2019 were temporarily dampened by the pandemic in 2020. Nevertheless, the market bounced back from 2021 onwards, showcasing its inherent strength and adaptability.
Looking Ahead: What to Expect in 2024
With all signs pointing towards a favourable market outlook, 2024 holds promising prospects for the residential real estate sector in India. The continued demand from homebuyers, coupled with the confidence instilled by regulatory reforms and positive economic indicators, sets the stage for another peak in housing sales and launches. As the countdown to the General Elections begins, all eyes are on the real estate market, poised to ride the wave of growth and resurgence.
Conclusion: Embracing the Potential of 2024
As India prepares for yet another electoral milestone in 2024, the residential real estate market stands at the cusp of opportunity and transformation. Drawing insights from past election years and recognising the resilience of the sector in the face of challenges, there’s a sense of cautious optimism pervading the industry. With regulatory reforms, developer dynamism, and market resilience driving momentum, 2024 holds the promise of another peak in housing sales and launches, shaping the future landscape of India’s real estate market.
