Election 2024 Results: How They're Shaping the Real Estate Sector - 10 Essential Takeaways

Jun 07, 2024


Experts say that the results of the 2024 election have affected the real estate market and made investors cautious about possible changes in policy. The real estate market usually slows down after the general elections, with fewer new launches and investors taking a "wait and see" stance. End consumers might not be immediately impacted by this, though, as they are more likely to buy when they come across a project that fits their needs and a good offer. Amidst uncertainty, investors show caution when it comes to elections, expecting policy changes. There aren't many transactions or new developments during this time, and investor choices are impacted by the state of the market, the success of the share market, and even the results of exit surveys.

Impact of Election Results on Real Estate Sector 

1. Investor Caution During Elections: Experts suggest that real estate investors tend to become cautious during elections due to potential policy changes. This cautious approach leads to a slowdown in the sector, with fewer transactions and new launches taking place as investors adopt a 'wait and watch' strategy.

2. Effects of Previous Elections: In the 2019 elections, both primary and secondary real estate markets slowed down as buyers and investors preferred to observe the outcome before making decisions. However, post-election results, the market regained momentum with a focus on infrastructure development.

3. Price Trends in Election Years: Comparing price trends during the last three election years, it is observed that 2014 saw a more significant increase in average prices compared to 2019. This trend indicates the impact of election cycles on real estate market performance.

ALso Read: Unveiling Mumbai's Skyline: The Rise of 154 Skyscrapers & A 34% High-Rise Surge by 2030

4. Impact on Homebuyers: While investors may adopt a cautious approach during elections, end-users are less impacted and tend to purchase properties based on their needs and preferences. Experts emphasize that for buyers, the right product at the right price holds more significance than electoral outcomes.

5. Future Projections for 2024: Anarock Research suggests a potential peak in housing sales and new launches in 2024, indicating optimism in the real estate market. Controlled launches, rising sales, and reduced unsold inventory are key factors contributing to this positive outlook.

6. Post-Election New Launches: Anticipation of a surge in new launches post-Elections 2024 is likely, with developers gearing up to introduce projects across segments, including mid-segment, luxury, and affordable housing categories. This trend reflects a buoyant market sentiment.

7. Price Stability and Growth: With reducing unsold inventory, increasing sales, and rising input costs, experts foresee a likelihood of stable or increasing housing prices in the future. Annual price rises ranging from 10% to 32% across different cities indicate the market's upward trajectory.

Also Read: The Rise of 3BHK Homes: The Emerging Trends in Indian Real Estate

8. Decision-Making for Homebuyers: Experts advise homebuyers to carefully evaluate available options and negotiate for the best deals unless waiting for specific luxury or high-end properties. The current market scenario suggests favorable conditions for making informed purchase decisions.

9. Impact on Commercial Real Estate: Anticipated GDP growth and sustained economic expansion are expected to drive demand for commercial real estate, particularly for Global Capability Centers (GCCs) and manufacturing facilities. This growth trajectory could have a significant impact on the construction sector and employment opportunities.

10. Focus on Affordable and Rental Housing: There is a hope that the new government will prioritize creating demand for affordable housing and address the decline in this segment by maintaining favorable interest rates and conducive conditions. Additionally, the need for a robust rental housing policy and incentives for affordable housing supply is emphasized to cater to evolving market demands.

In conclusion, the real estate sector's response to election results underscores the delicate balance between investor sentiment, consumer behavior, and government policies. The trends observed in previous election cycles and future projections highlight the dynamic nature of the real estate market and the opportunities and challenges that lie ahead.

Source: hindustantimes.com

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