Impact of Election Results/Coalition Government on Current Real Estate Market and its Trends

There is no doubt that elections have always played a very crucial role in shaping every sector out there. Therefore, the real estate sector is no different. With the change in government formation, one can expect shifts in economic strategies, policies, and investment climates. All this tends to impact the real estate market. Moreover, this is applicable in regions like Gujarat as the political landscape does have the tendency to influence the confidence of investors, infrastructural development and lastly, the regulatory frameworks.

Shri Narendra Modi has once again come to rule the country as the Prime Minister of India. His victory for the third term denotes that the party has delivered unprecedented policy certainty which is something that the real estate industry really needed.

When it comes to Ahmedabad, the real estate market is very sensitive to political changes. The 2024 elections have played a hand in shaping the future of real estate in this vibrant city. The economic outlook, policies of the government and political stability all are influenced by the outcome of the elections.

Immediate Impact:

There is new-found optimism in the real estate sector of Gujarat, especially Ahmedabad. Since the government is extremely pro-development, there seems to be a lot happening in terms of buying and selling properties. Several policy reforms and key initiatives have already been announced that shall be instrumental in stimulating growth as well as attracting various investments. To name a few of the immediate impacts, here’s a list below to peruse through.

• Confidence Boost Amongst Investors: With the government having a strong focus on economic development as well as infrastructure, the investors’ confidence seems to have been instantly boosted. Ahmedabad real estate sector has significantly seen a rise in domestic and international investors.
• Reforms in Policy: Various policy reforms have been announced by the new government. These policies aim to ease the process of land acquisition. This is done by reducing bottlenecks as well as promoting the concept of affordable housing. The newly introduced reforms are also expected to make Ahmedabad’s real estate sector more transparent. These investor-friendly reforms are sure to attract more investments for Ahmedabad.
• Infrastructure Development: The newly appointed government is extremely focused on enhancing the city’s infrastructure to make it more conducive for growth and other business ventures. With the recent announcements of new metro lines, bullet train projects, road networks and other smart city projects, one can notice a significant change and shift in the real estate sector. These developments are sure to drive up the demand for more residential as well as commercial properties in the city, as well as the state.
• Increased Activities in Real Estate Sector: Since there’s a really positive sentiment regarding the election results, one can notice a significant positivity towards real estate activities. Political uncertainties do drive developers hesitant with their projects. But with stability, developers have resumed back to their projects, going ahead and launching as well as announcing new initiatives. Moreover, a high inclination is seen towards affordable housing and commercial segments.