Hailing the outcome of the lok Sabha elections real estate developers and experts have expressed hope that the stable BJP-led Government at the Centre would rejuvenate the property market.
The sector is looking forward to a number of policy initiatives, including a review of the FDI rules in housing, status of the Real Estate Investment Trusts (REIT) Regulations, 2013, and effective implementation of Real Estate (Regulation and Development) Bill.The long-awaited infrastructure status to the sector and single window clearance system are the other significant issues that the new Government will have to look into according to industry players.
"The formation of a stable Government that is not dependent on coalition partners will hopefully lead to faster decision-making and economic reforms. If GDP growth picks up, one of the early beneficiaries would be the real estate industry. However, the economic fundamentals have to be tackled, infrastructure projects need to be implemented with a sense of urgency and housing mortgage interest rates have to decline before we see any significant impact on the real estate market," said CBRE South Asia Chairman & Managing Director Anshuman Magazine.
Realtors' apex body CREDAI Chairman lalit Jain said, "we have huge expectations from the new Government as Narendra Modi has demonstrated good governance in Gujarat."Jain said the sentiments would immediately improve and that will drive the property market. "We expect efficiency in approval processes and easier bank funding - which are the two major concerns for the industry."The realty sector has been facing a huge slowdown in demand over the last few years due to high interest rates on home loans and insipid economic growth.
Sanjay Dutt, Executive MD, South Asia, Cushman & Wakefield, expects a stable government will lift the sentiments of the investor community who form a dominant role which will impact housing and office sales. Hence, both end-users and investors are also expected to increase their investments in the sector and contribute to its growth.Parsvnath Chairman Pradeep Jain said, "we are optimistic about the reforms and changes that this Government will bring in to boost the economy. For the real estate sector in particular, we firmly believe that the sector will be given industry status this time which will ease all fund inflow."
Global property consultant Jll India Chairman & Country Head Anuj Puri said that in order to boost affordable housing, the new Government should look at issues like expediting the land acquisition process, faster approvals, easy and low cost funding availability and better infrastructure.