DELHI: Buyers—end users and investors—must make up their minds soon and enter the market, as prices are expected to appreciate once a new government is sworn in. A new, stable government will have a positive influence on the economic growth story, which has been sluggish in the past few months. With revival of the economy, the demand for real estate is expected to improve drastically, which would further lift the prices in the sector. Naturally, with the talk of a new government, all the stakeholders—developers, builders, consultants, suppliers, end users, investors—have each come out with a wish list.
The fraternity of developers and builders has long been campaigning for a faster project-approval process and reduction in the cost of borrowings from banks. There is hope that the new government will streamline the process of clearances for real estate projects. Developers and builders say that the new government must move quickly to improve the investment environment, which would facilitate the overall growth of the economy. Also, government has to focus on re-starting all the infrastructural projects, which were stalled owing to financial issues. But, whether the economy, and the sector, remains on track from there on will depend on the polices and the performance of the government.
A positive sentiment can very easily sour if the intentions are not reflected by good performance and transparent policy decisions. The industry expects transparent policy decisions, interest rate-reduction regime, and time-bound clearances from the next government, apart from a booster dose to re-kindle the sleeping economy. Experts say that in the present condition, a new government will need at least six months to build momentum. The sensex has taken a cue from opinion polls and jumped, demonstrating the aggressiveness in the market and also the positive sentiment sweeping the country.
At the same time, any new development at a political level will have a big impact on the economy. Experts say the new government must roll out something good for the real estate sector, as it has been quite a while since the sector has received its due. Many developers are all set to offer possession in their respective projects. Apart from getting the possession of the house, the best thing that has happened for investors is that the prices of these projects are now quoting at almost double the rate that they were sold, at the time construction began.
Top developers of the NCR like DLF, Tata Housing, Godrej Properties, Adani, Ansal API, Bestech, BPTP, Puri Construction, Ambience Group, JP Group, Supertech, Amrapali, Gaursons, ATS, Antriksh Group, Assotech Ltd, Assotech Realty, Ajnara, Gulshan Homes, Prateek, Unnati Fortune, etc, have offered by far the best deals in the NCR regions of Gurgaon, NoidaGreater Noida, etc. Many of their projects have registered a handsome price appreciation since their launch, and with some of them about to offer possession, investors can hope to reap rich dividends.
Navin Raheja, the CMD of Raheja Group and president of Naredco, says: “We expect a turnaround after a stable government is formed at the Centre. Currently, all the buyers are uncertain about the performance of the economy and are holding back on investment decisions despite attractive deals in the market. The biggest reason of the slowdown is that people are hesitant to invest. Now, a lot of uncertainty is set to clear and people will be in a better position to take a decision on investing in properties.“
Rohit Raj Modi, the officiating president of Credai, NCR, and executive director of Ashiana Homes, says: “We are awaiting the formation of a government. The economy in general, and the real estate sector in particular, is eagerly looking forward to the policy formulation of the new government. The current situation calls for a quick but well-planned push from the new government to set the market rolling. We expect the government to take decisions on our demand for single window clearance, REITs, and speedy environment clearances within a few months from now.“
Rajesh Goyal, the MD of RG Group, says: “The new government is expected to launch the next round of economic reforms in the country, which will improve the overall sentiment of the market. We are hoping the new government will reduce the interest rate on loans making investments in real estate easier for the common man. Also, the new government must rationalize the tax structure to give a boost to all the industries. Once these policies are set in motion, we expect the real estate industry to start reviving by the end of the year.“
Rakesh Yadav, the MD of Antriksh Group, says: “We expect the new government to bring in a single-window clearance, make cheaper finance for real estate available, and relax funding norms to make affordable housing projects more viable, among other policy measures. Overall, confidence in the economy would be restored once a stable government comes in.“ Ajay Aggarwal, the MD of Microtek Infrastructure, says: “The decks have been cleared for a new government and we expect it to be stable. The industrial sector, including the real estate sector, is eagerly looking forward to the new government moving swiftly on the policy front. The revival of market and buyers’ sentiments need the government’s push–while inflation must be contained on the one hand, spending has to be encouraged on the other hand.“
Mohit Goel, the CEO of Omaxe Ltd, says: “The performance of the market is dependent on the stability of the new government. However, if one were to go by analysts who forecast a stable government, it would benefit domestic as well as foreign investors’ sentiments, which will be complemented by the improvement shown in macroeconomic indicators and the global economy. We also expect the government to take cognizance of the long-pending demand of the real estate sector like incentives for building affordable housing, enhanced tax reliefs for homebuyers, and according the status of industry to the sector, among other measures.“
Anil Kumar Tulsiani, the CMD of Tulsiani Constructions and Developers Ltd, says: “The real estate industry will definitely benefit from the formation of the new government as there is a lot of speculation that it will be stable and strong-this in itself has infused a lot of positive sentiment into the market.“ Kamal Dutta, the director of DPL Group, says: “With the formation of a new government, the scene in the real estate will change. There will be no magic, but if the new government is serious about promoting industrial growth and employment generation, then it would ensure that the economy changes gears and it will be reflected in secondary sectors like the real estate industry as well.“
Manoj Dwivedi, the CMD of Shri Infratech, says: “We are hoping for a stable and decisive government. The formation of government needs to be followed up with quick decisions on some pending is sues like RETs. The mar ITs. The market needs a thorough overhaul and a big push to come back on track and the government will have no choice but to set the ball rolling from Day 1. However, the new dispensation will need at least three-six months to bring the sector firmly on to the revival path.“
“We expect the government will take immediate action on delays pertaining to approvals on the height of projects and environment clearances. The government also needs to ensure that construction quality norms are not compromised in the process, but at the same time, the government will have to face the challenge of ensuring that any fast-tracked approval process does not result in misuse and exploitation. To ease commuting woes in Ghaziabad, NH-58 needs to be widened. It connects Delhi with Dehradun and faces challenges due to heavy traffic congestion. We hope the new government will resolve the issue,“ Gaurav Gupta, the director of SG Estates, said.
“With the country eagerly awaiting the formation of a new government, the sentiments have suddenly turned very positive, which was expected and is a very good sign for the realty sector. The sensex, which is a clear mirror of the market sentiment, has also gone up. We are hoping for a similar jump in demand for realty sector in the coming weeks,“ Kamal Batra, the chairman of Buniyad Group, said.