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The Lok Sabha elections in 2024 may increase housing demand in the nation since the majority of real estate regulatory changes are in place and the robust GDP growth forecasts for India by the International Monetary Fund (IMF), according ANAROCK India’s research.
Home sales increased dramatically in 2014 and 2019, the years of elections according to the data. Sales in the top seven Indian cities increased to almost 3.45 lakh units in 2014, while new launches touched an all-time high of almost 5.45 lakh units.
Similarly, following a drop in the residential real estate market between 2016 and 2019, house sales rushed to over 2.61 lakh units in 2019 while new launches raised to almost 2.37 lakh units.
Housing Demand In India And Possible Launches In 2024
Significant structural changes, such as the 2016 introduction of the Real Estate Regulatory Act (RERA), inspired the real estate market and providing the required regulatory safeguards to improve the assurance of new homebuyers.
“International organizations like the IMF have strong GDP growth predictions for India over the next few years, and the majority of real estate regulatory reforms and norms are already in place.” The real estate industry profits indirectly from the fast growth of the Indian economy.
Furthermore, according to ANAROCK, the fact that inflation is firmly under control has increased homeowners’ confidence and financial optimism.
As things stand, all indications point to 2024 being a favorable year for the residential market, with another high in home sales and new launches possible in that year. ANAROCK Group Chairman Anuj Puri stated.
Developers Focusing On Land Acquisitions To Fulfil Housing Demand In India
Developers have finalized large land acquisitions in the past year due to rising demand from homebuyers. To expand their footprint, a number of sizable firms with strong track records and balance sheets are branching out into more recent areas.
Of the 97 land purchases that concluded in 2023, according to ANAROCK statistics, around 74 agreements totaling more than 1,945 acres are planned for residential construction in Tier I, II, and III cities.
Price Appreciation In Real Estate
Year 2014 was a stronger year than 2019 for elections, according to Puri,. According to data, the average price in the top seven cities increased by more than 6% year over year in 2014. In 2019, the average price increase was only 1% each year.
However, in the top 7 cities in 2023, average home costs increased by 10–24%, with Hyderabad seeing the most 24 percent increase. In these markets, the average price per square foot was around Rs 7,080 in 2022, while it was just Rs 6,150 in 2022.
Following the release of the election dates, Puri stated that there is still a strong demand for housing in all cities, with purchasers feeling quite positive about the real estate market.
Homebuyers Rush To Seal The Best Deals
Vice President Kiran Kumar of Bengaluru’s Hanu Reddy Realty told Moneycontrol that he observed a fifteen percent rise in homeowners hurrying to conclude residential agreements before the general election began (compared to January 2024).
The bulk of present homebuyers, are end users rather than investors according to ANAROCK data.
“When end consumers are able to pay the ticket price, they will purchase. Having said that, Puri told Moneycontrol, “property prices are rising steadily regardless of the election results, and those who can afford to buy now will do so rather than risk paying a higher price later.”
He continued, saying that although the current administration has been quite explicit about the benefits it provides to homeowners, the general mood is already optimistic and would undoubtedly find support in a favorable election outcome.
Source- Moneycontrol
