Real Estate Industry Shares Positive Sentiments Towards New Govt Amid Lok Sabha Elections Result

Amit Goyal, Managing Director, India Sotheby's International Realty, suggests that the re-election of a standing government will positively influence the Indian economy and the real estate sector

A potential third term for the NDA government would ensure continuity in India’s socio-political and economic landscape, further boosting the sector’s growth ( Image Source :Getty )

With exit polls indicating the BJP’s potential return to power and the BJP-led NDA leading in approximately 290 seats, while the Congress-led INDIA bloc is ahead in approximately 229 seats, the real estate sector is hopeful for the continuation of positive policies and sentiments under the new government. All attention is focused on the new government to further boost the sector's current growth momentum. 

A potential third term for the NDA government would ensure continuity in India’s socio-political and economic landscape, further boosting the sector’s growth. Amit Goyal, Managing Director, India Sotheby's International Realty, suggests that the re-election of a standing government will positively influence the Indian economy and the real estate sector. Political stability notably boosts confidence among consumers and investors alike.

“We are a young country, poised to become the third largest global economy by 2027, and demand for homes is inevitably going to remain strong now that we have stability on the policy front and continued focus on infrastructure development. The growing number of affluent in the country, particularly benefits the luxury segment of real estate, and we expect the buoyancy to continue,” he said.

“We do believe that several of the measures brought in by the BJP led government such as RERA need far more fine tuning, to be effective in spirit. NDA 3.0 will also be presenting the union budget soon, and this will be an opportune time to relook at GST burden on under-construction homes, and increase the tax breaks on home loans, to encourage wider home ownership,” Goyal added.

Shrinivas Rao, FRICS, CEO, Vestian, said, “The real estate market sentiments are optimistic as the stock market is moving northward, especially the BSE Realty Index which has crossed 8,400, reaching the highest level since 2008. Furthermore, it has grown by 4-5 per cent in the past five days on the back of positive expectations from the newly elected government.”

Rao added: “We expect the newly elected government’s uninterrupted focus on infrastructure development and a boost to affordable housing in the coming years. Moreover, the real estate sector should be allocated industry status to ease the availability of funds and increase the participation of foreign investors.”

Badal Yagnik, CEO of Colliers India, said the real estate sector anticipates ongoing structural reforms and policy backing from the incoming Central government.

“RERA & GST implementation, national policies specific to logistic parks & data centers and overall infrastructure push in the form of National Infrastructure Pipeline & Gati Shakti National Master Plan have instilled a sense of confidence amongst various real estate stakeholders in the last decade. These long-term measures to balance growth while maintaining fiscal discipline will be pivotal to drive equitable public & private investment in the economy. A progressive and an economically viable vision is inevitable if real estate sector is to reach a $1 trillion market, forming 13-15 per cent of the country’s GDP by 2030,” said Yagnik.