Continuity in Governance and policies shall greatly influence the success of all reformatory changes

Long-term benefits of recent reforms will accrue only with the continuity of their enforcement by this or the next government. Laxman Jaiswal said that a strong stable and effective Government and Governance is the need of the hour. He further elaborated that the fight between Nationalists and Anti Nationalists forces shall determine the outcome and he strongly advocated the voters to be rationale and objective in their voting as a hung Parliament would again spell doom and after a stable and strong Government  for 5 years under Narendra Modi India cannot afford to have instability at the Centre.

Laxman Jaiswal also mentioned that the recent successes in the foreign policies, India’s global image as strong Nation and increase in Indian Rupees’s strength vis-avis US Dollar can assure of greater development increase in Business, development of infrastructure all prerequisites for growth in business, more employment and increased GDP.

He said, “As a representative of the Real Estate sector I feel that the positive growth coupled with some very effective laws have played a long term beneficial role and I strongly advocate the idea that for the growth of a Nation long term decisions impact the future.”

There is a hesitancy working in this period when General elections are declared till results come out and similarly this is a sluggish period as stakeholders conjecture about the possible outcome as investors generally refrain from making market adopting a wait-and-watch stance. Developers too  focus on selling their unsold stock rather than launching new projects. A very favourable time for home buyers though.

  

It certainly bears watching if the current Government remains in power to finish the work it has started in reforming the Indian real estate sector, or whether a newly-elected government will hold on to the baton of change and take it to the next lap.

The overall macroeconomic environment after the general elections will play a pivotal role in deciding the fate of the Indian realty sector in 2019 and beyond. Data suggest that 2014 (the year of the last general elections) saw the maximum launches and absorption across the top seven cities, with nearly 0.55 million units launched during the year, and nearly 0.35 million units being sold. The previous year witnessed less number of launches and lower sales. 

 

The fact that the new government came to power with a clear majority raised optimism, and the improved sentiment resulted in both sales and new launches picking up.

Due to a spate of policies that followed new launch and sale numbers came down. The Real Estate sector has not recovered so far but I feel that the long term benefits shall accrue to the sector in the coming years provided there is continuity in Governance

Thus, despite a stable government in power, reformatory changes with indubitably favourable long-term implications dealt severe blows to the real estate sector in the short term. Their long-term benefits will accrue only with the continuity of their enforcement by this or the next government.