Lok Sabha Polls 2024: Can the general election results impact the real estate market? Experts weigh in
Prime Minister Narendra Modi has clinched a third term. Yet, the BJP depends on other parties within his coalition, notably JD(U) chief Nitish Kumar and TDP's chief Chandrababu Naidu, as they fall short of the 272 majority mark by 32 seats.
Real estate industry experts believe that the scale of the BJP’s victory to a third term means it has delivered unprecedented policy certainty, which the real estate industry yearns for.
The general election results can indeed impact the real estate market. Political stability, government policies, and the economic outlook influenced by election outcomes can affect investor confidence, which in turn influences real estate investment decisions.
Livemint spoke to experts on how election results may impact the real estate market.
The government's new tenancy act, made possible by their strong majority, has revitalised rental housing, previously an overlooked segment in Indian real estate. Introducing accountability measures and transparency in rental agreements has reassured investors about returns on their assets. According to Gunjan Goel, director at Goel Ganga Developments, private developers are now showing interest in constructing purpose-built rental accommodations in both urban and tier-2 cities.
The ₹25,000 crore stressed asset fund also reflects the government's commitment to addressing concerns about stalled housing projects. Offering priority debt to the sector has restored buyer confidence, leading to a swift revival of construction activities and housing completions across major markets immediately after the election results, Goel added.
The government's decision to extend the Credit Linked Subsidy Scheme under PMAY until December 2024 and the changes to LTC guidelines have
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