Though it is too early to presume, but the India property market seems to have made a positive turn around with the election of the new Prime Minister, Narendra Modi. The real estate market seems to be enjoying the ‘Modi effect’ as more and more companies are anticipating expansion and therefore starting to rent bigger and better spaces.
The Indian real estate has been witnessing a significant slump in demand over last 2 – 3 years, mostly due to high interest rates on home loans as well as lower economic growth. However, real estate experts opine that the property market will revive with a stable government at the Centre. Shishir Baijal, Chairman & Managing Director of Knight Frank India recently said that the economic and political stability in India would act as a catalyst for its revival of the real estate sector.
Experts and heads of some of the leading players of the India real estate industry have spoken on what they expect and hope from the new prime minister of India.
Pradeep Jain, Chairman of Parsvnath said that they were optimistic about the reform and changes the Modi government will bring in to boost the economy. And as for the real estate in particular, they believed that the sector would be given industry status this time which in turn will ease all fund inflow.
Anuj Puri, Chairman & Country Head of Global property consultant JLL India mentioned that in order to boost affordable housing, the new government may look at helping on quicker land acquisition, faster approvals, easy and low cost funding availability and better infrastructure.
Cushman & Wakefield Executive Managing Director (South Asia) Sanjay Dutt opined that a stable government would lift the sentiments of the investor community, who plays a prime role in housing and office sales, whose increased investments would contribute to the growth of the sector.
Consultant DTZ Chief Executive Anshul Jain said that the next 5-6 quarters could be the game changers. With availability of funds easing and interest rates coming down, the supply side of the real estate could see a bigh high.
The Indian real estate sector is also expected to witness a uplift in the FDI which in turn will strengthen the India Ruppee as well. Investors worldwide are highly optimistic about the Indian economy, which expects to see more than 100% rise now in foreign investment inflows. While a clear majority will enable the government a strong stability at the centre, this will encourage investors in the real estate market as well.
While an affordable housing policy implementation and providing homes to every Indian family in Modi’s plans present a golden opportunity to the India real estate sector, consumers on the other hand are hopeful about a revision in property pricings and expect a reduction in home loans, the implementation of the proposed GST framework and the implied tax benefits to buyers.