The general elections are on in the country and which political party or parties will form the government will be decided by crores of voters in the due course. The Indian real estate industry, especially commercial real estate, is hugely impacted in the run up and the actual course of elections every five years.
The real estate industry in general and commercial real estate industry in particular have been impacted by certain regulations in the country like GST and RERA in the recent years. There have been corrections and acclimatisation by the developers after the regulations have come in place. Now the industry is waiting for to see which party will form the government and what will be the new policies of that government.
Commercial Realty Likely To See Buoyancy After Elections
There is near unanimity on the fact that there will be more deals and buoyancy in commercial real estate after the elections are over, regardless of which party comes in power. Elections in Indi are generally marked with slower movement in deals and transactions. Commercial real estate moving in the slow lane should be over immediately after the elections are over, experts say.
Better Deals Available During Elections
Since the velocity of deals and transactions go down during the elections, there are good deals available during this time as developers and landlords are sometimes desperate to sell or lease out. Corporates, especially start-ups, can get a good deal in terms of lower rental just before and during the elections as the overall activity in the commercial real estate sector is slower.
New Government And Policy For Real Estate Sector
After the elections are over and the new government comes in, there can be a new set of policies for the real estate sector. The new set of rules will impact the intentions and planning of the real estate developers. The developers will then start to realign their plans and come up with new stock as per the new rules. The new set of rules can aid or impede the growth of the commercial real estate and the developers are in wait and watch mode to an extent right now.
New Government and Overall Economic Scenario
The new government will come out with policies for various sectors of the economy and many companies are right now holding on to their plans for investment, hiring and expansion. Once the policy direction is clear, there will be more hectic activity by them and there is expectation of higher velocity of leasing and sales deals by them.
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