With India gearing up for its 2024 general elections, a question lingers in the air: will the housing market experience another boom, similar to those witnessed in previous election years? Historical data offers a glimmer of hope for the real estate sector.
During the 2014 general elections, the top seven Indian cities saw a surge in housing activity. Sales figures reached a peak of approximately 3.45 lakh units, while new launches soared to a staggering 5.45 lakh units. This robust performance wasn't a one-off. The 2019 elections, though witnessing a slight dip compared to 2014, still displayed positive growth, with sales reaching around 2.61 lakh units and new launches clocking in at approximately 2.37 lakh units.
Market analysts are drawing parallels between the current pre-election scenario and the trends observed in 2014 and 2019. Anuj Puri, Chairman of ANAROCK Group, a leading real estate consultancy, believes that "all signs currently favour the residential market in 2024." He highlights the sustained high demand from homebuyers across major cities, even after the announcement of the election dates. This optimism, coupled with the implementation of key regulatory reforms in recent years, paints a promising picture for the sector.
The impact of these reforms, specifically the Real Estate (Regulation and Development) Act (RERA), shouldn't be underestimated. Introduced in 2016, RERA aimed to bring transparency and accountability to the real estate market. By establishing regulatory bodies and streamlining processes, it instilled a sense of trust among buyers, potentially contributing to the increased activity witnessed during the previous election cycles.
Furthermore, developers seem to be taking a proactive approach in anticipation of a potential boom. Land deals have witnessed a significant rise over the past year, indicating a strategic move to capitalize on the anticipated surge in demand. Additionally, developers are venturing into new territories, expanding their reach and catering to a wider pool of potential buyers.
While historical trends and current market sentiment suggest a possible peak in 2024, it's crucial to acknowledge the inherent uncertainties associated with general elections. Policy shifts and economic fluctuations can significantly impact the housing market. Nevertheless, the current optimism within the industry, fueled by past election-year performances and ongoing positive developments, suggests that India's housing market could be poised for an exciting year ahead.