General Elections – Will the property market witness another peak in 2024?

The connection between general elections and the housing market is undeniable. As we gear up for the 2024 elections, all signs point towards another boom in housing sales. Why? Well, it’s a mix of stricter regulations in the real estate sector and a growing desire among people to own their homes.

According to a study by Anarock Research, the groundwork for this housing surge is laid out nicely. Real estate developers have been busy sealing land deals over the past year, and most of them are in a solid financial position. Many big developers, known for their reliability, are expanding into new areas, which speaks volumes about their confidence in the market.

Looking back at previous election years like 2014 and 2019, we see similar patterns. In 2014, there was a whopping sale of around 3.45 lakh housing units in the top 7 cities, accompanied by a record high of nearly 5.45 lakh new property launches. Fast forward to 2019, and despite a slight lull in the market between 2016 and 2019, there were still impressive numbers – about 2.61 lakh units sold and 2.37 lakh new launches.

What’s changed since then? Well, major reforms like DeMo, RERA, and GST have transformed the Indian real estate scene from a bit of a wild west scenario to a more organized and regulated market. Shady developers have left the scene, making way for more reputable players, which has boosted confidence among potential homebuyers.

Anuj Puri, Chairman of ANAROCK Group, points out a crucial factor driving this housing market frenzy – the decisive election results. When people see a clear outcome, they feel more secure making big decisions like buying a home.

Comparing price trends in election years, 2014 was a standout year. Prices in the top 7 cities surged by over 6%, whereas in 2019, it was a more modest 1% increase. This suggests that 2014 was a stronger year for the market.

Between 2016 and 2019, the real estate sector experienced a slowdown due to various policy changes and financial crises, like the NBFC crisis post the IL&FS issue in 2018. It wasn’t an easy time for the industry.

Then, just when things were starting to look up in 2019, the COVID-19 pandemic hit in 2020. But surprisingly, instead of causing a long-term setback, the housing market bounced back strongly from 2021 onwards.

So, what can we expect for 2024? Well, all signs are pointing towards another peak in housing sales and new launches. The excitement around the upcoming elections seems to have spurred even more optimism among potential homebuyers. Cities are buzzing with housing demand, and it seems like a promising time for the real estate market.

In essence, the real estate market is gearing up for another big year in 2024. With regulations in place and a positive outlook among buyers, it’s shaping up to be a busy and exciting time for the housing sector.

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