New indian governent to resurrect dream of homeownership

Photo: A Kap

Santhosh Kumar, CEO of Operations for JLL India, says that the new government "promises to aggressively promote affordable housing", a move he welcomes with strong optimism.

"Property is once again going to become the most popular investment option, as there will be significant appreciation in real estate prices on the heels of higher demand in the coming years. With the easing of regulations, developers are expected to speed up the construction process, providing relief to buyers who have already invested.

"The big names of the Indian industry have welcomed the new government with a hope that it will bring the economy back on track and raise the currently plummeting GDP to 8-9% in the coming fiscal. The new government at the Centre is expected to infuse life in the existing policy paralysis in the country by removing the major bottlenecks that are deterring growth."

Foreign Direct Investment in Indian real estate is also predicted to enjoy a boost of more than 100 per cent to above $60 billion in the current financial year, strengthening the weak rupee.

The three major promises made by the NDA in their manifesto that have direct pertinence to the real estate sector are the development of 100 new cities; putting a new land use policy in place; planning for low-cost housing.

Kumar highlights four key steps that the government must take, including reversal of the land acquisition act, clearance of pending receivables to the private sector via fast-tracked bureaucratic decision-making, provision of fiscal stimuli to improve industrial growth and the creation of investment-friendly real estate market via lowered interest rates and increased employment.

"Modi’s pledge to implement an affordable housing policy and thereby provide homes to every Indian family presents a $150 billion business opportunity to the sector," he comments.