AFTER MASSIVE VICTORY FOR NDA IN ELECTIONS REAL ESTATE INDUSTRY PINNING HOPES FOR FASTER REVIVAL ON MODI 2.0
The National Democratic Alliances (NDA) under the leadership of BJP's Narendra Modi made a clean sweep of the LokSabha Elections 2019. They got a thumping majority having won 352 seats out of 543 seats, thereby surpassing its own performance 5 years ago in 2014. And Narendra Modi has made history by being the first non-Congress Prime Minister to have been re-elected after completing a full 5 year term in office.
But with both demand and investment slowing, the new government might have to re-evaluate the implementation of its policy agenda and adjust its policy priorities to accelerate growth in the near term.
The real estate industry reeling under duress for the past 3-4 years is now pinning its hopes of revival on the new BJP-led NDA government. As the sector continues to grapple with a surfeit of stalled or delayed housing projects, piling up of unsold inventory across cities, unaffordable property prices for the largest part of the population and the ongoing liquidity crisis, it has high expectations from the new government to improve liquidity, balance fiscal discipline with stimulus and expedite resolution of stressed projects and streamline implementation of RERA (Real Estate Regulatory Authority Act).
Dr.Niranjan Hiranandani, National President - NAREDCO and Managing Director, Hiranandani Group says "The industry is hopeful that the government will redress and resolve the prolonged issue of liquidity crisis that the sector is facing currently" He further suggests that rationalisation of taxes by subsuming stamp duty under GST will be a big relief to home buyers.
He also hopes that the new government will continue its progressive policies initiated in the past five years and works further for the structural reforms and steps that will boost real estate business and strengthen consumer sentiment towards the Indian real estate. He also recommends the National Housing Policy to boost rental housing in order to fulfill the ambitious target of Housing for All. The real estate industry also hopes that the new government would fulfill its promise of Housing for All by 2022 giving a push to the economy and employment generation.The industry now wants the new government to emphasize on re-energizing the reforms related to infrastructure investment and land acquisition reforms and take measures to expedite and streamline the environment clearances for the new projects, which is a two-stage process and takes two-to-three years.
Omaxe CEO Mohit Goel feels that the government should continue investing in infrastructure, incentivize private investments in manufacturing and ease up financing. These measures will create jobs and give the necessary impetus to consumption.
Here’s wishing the Modi Government a very successful 2nd term that will enable it to propel India to still greater heights of inclusive progress and success.