A lot of real estate consultants come across this question from their clients that how could elections impact property values and real estate markets. Real estate is a critical sector of the economy that affects buyers, sellers, renters, landlords and homeowners. A number of factors owe to the increased cost of properties and thus the developers bestow the cost implications upon homebuyers or alternatively pull back on projects. Elections are on-going and the election results for five state assemblies have been announced and governments have been formed. While some sectors are still facing the aftermath of the demonetization move by our Prime Minister, Narendra Modi, it looks like the citizens of our country are in sync with the PM’s vision. Elections don’t only play a crucial role in deciding the governance, but also have a far-reaching impact on property sentiments of that region. Let’s have a look on its impacts and understand will it boost the confidence of home buyers in their regions and how:
Punjab: With a former C.M. back in power we are positive that the sentiments in property markets are positive. We can look for reforms in the policies that have been set for the development of towns and cities. One critical aspect is the need of establishing rapport with the Central government.
Goa: Goa’s property market is moving quite slowly for a really long time now. Even here the return of a former minister looks like a good news. We are expecting improvement in the local infrastructure, especially and with the same the housing demand is expected to pick up. Going by the news, the government is in talks to pursue a new airport project. Such developments will for sure give an impetus to not only state’s development, but also the realty sentiments.
Uttar Pradesh: Being one of the most populated state of the country, housing holds great significance in this state. The last ruling party had focused on mass housing and with B.J.P in power, the housing sentiments will improve. BJP has always supported ‘Housing For All’. Samajwadi Awas Yojna combined with the PM’s Housing for All scheme will bring a combined impact. With Noida topping the list in the ‘affordable housing segment, Noida will for sure see good time in the coming years. Lucknow is another area which is quite active in the property markets in India. With an influential leadership in the state, we are hopeful that the long pending issues will be taken care of.
Manipur: Manipur is also seeing an increased supply of affordable housing, it relies on heavy funding from the central government, especially for infrastructure projects.
Uttrakhand: The same is the case with Uttrakhand. With such a friendly government in Delhi, we are hopeful of increased fund allocations for infrastructure development.
India has a history of political instability with a lot of parties winning on wafer thin margins. The bottom line should be electing a government favorable to the state’s economy. Demonetization has set a very good example which has made the leaders of the country confident in implementing tough reforms. If BJP wins in the remaining states, Housing For All scheme will be much easier to penetrate and get easily implemented in the State as well as the Center. Elections always have an impact on the key micro-markets and we are hopeful that the remaining results will be in favour of the real estate market.