Modi 2.0 will offer a lot

India has chosen a government that in last tenure shown some positive signs of taking forward the economy. It also portrayed its intentions to bring about changes in the way things are done or industries being. Now that they are back, it is time to see how 2.0 pans out. Real estate got many lucrative policy changes in the last tenure, and those changes were not restricted to developers but were mostly aimed at the buyers, who were being waylaid by fly-by-night operators for long.

The very first thing that the government did in its last tenure was to tighten its grip on real estate by reining in the black money hoarders. It brought to an end the era of speculation, which was one of the reasons behind the spiralling real estate prices in the secondary market. The speculation market was came to an all-time low and on the other hand many schemes were floated that benefited homebuyers and long-term investors. Major policy overhauls gave importance to all round development like DeMo, RERA and GST, amended old Acts like Insolvency & Bankruptcy Code and the Benami Transactions (Prohibition) Act, and envisioned schemes like 100 Smart Cities, Housing for All by 2022, Make in India, AMRUT Cities etc.

To top it all, all the policy changes were long-term and they will bear fruit now in this term. The good thing about the sector is that the same government that did so much for the forgotten sector is back in power. Looking back, it can be said that no other government has taken so many policy decision that will help regulate real estate and benefit the buyers. It is for this simple reason that the expectations from Modi 2.0 are on a high.

Now it is time that these policy changes should reach conclusion so that we can provide better real estate landscape. With this government we expect that the momentum will not be lost and a new speed will be provided that will make real estate sector a better place to do business — buy, sell, and invest.

Some of the initiatives that are likely to pick pace include ‘Housing for All by 2022’. This initiative has seen a lot of criticism in the past regarding the viability. However, with the same government at help it is possible to  achieve it through sustained efforts. The firm belief is that if not 2022, the mission can be completed before the end of term for this government. Even if that happens, it will be a game changer for the real estate sector and buyers will be elated at being able to get the homes of their dreams.

The sentiments in real estate is bullish and is expected to remain so in the years to come. Business community has shown faith in the government as was evident from the jump that was witnessed in Sensex during the exit polls when it was assumed that Modi-led government will come back to power.

Policies such as single window clearance may become a reality soon. Like many other demands, this too has been in the queue for quite some time and all the stakeholders have been waiting for it. If single window clearance comes into effect then the timely delivery will improve and it will act as one more step in regularising the real estate sector, as approvals and more so timely approvals and simultaneously development of infrastructure around projects  are integral part of real estate development, more simplification of processes, accountability and efficiency on timely approval from relevant Goverment authority is must for industry to accelerate pace of development and bring back demand in the sector  .

On retail side , FDI policy in Retail sector will also boost demand in organized retail development that will lead to huge creation of Jobs  and will certainly help the allied industries to flourish. Foreign investment in real estate development projects will also increase and ease out liquidity across all segments  of real estate.

Due to acceleration in economy demand for commercial real estate will be very positive, emergence of new innovative solutions  and formats such as Co-working spaces  will see a rise in demand and help the growth of industry . Overall for Reality market continuity of existing Government brings optimism and hope’s of promises being delivered  to accelerate the demand and growth for the most important industry leading to  positive Contributions to Indian economy.

NRI has come back to real estate and once again showing interest in asset class. Especially the NRIs living in the Gulf and the US are back with zeal as property prices are rationalised and  favorable policy reforms by the government. A latest trend in NRI investment is the interest in affordable and mid-segment housing, which is happening due to government incentives and the demand for such houses that gives assured rental income.

Modi 2.0 has a huge task ahead and we are sure that by the end of this term, real estate will go through a sea change.

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