With the glorious victory of BJP in General Elections 2019, the Indian real estate industry is hopeful and cheerful that Modi 2.0 will continue to strengthen its initiatives for the segment. While the first inning of Modi leadership saw some major landmark reforms in the industry like Real Estate Regulation Authority (RERA), demonetization, real estate investment trust (REIT), smart city project and GST to name a few, the industry stakeholders are optimistic that a stable Modi government will prove to be a boon for the industry.
This is how Modi 2.0 is expected to boost the Indian real estate industry:
· Correcting Slow Economy:
In its election manifesto, the government has pledged to give cash handouts to farmers, spend over USD 1.4 trillion to develop infrastructure and double the exports. Such proactive plans in conjunction with tax benefits to the middle class will definitely boost the economy and reverse the recent slowdown in consumer spending.
· Bringing NRI Investment:
2018-19 saw a spurt in NRI investment in real estate which was again attributed the host of reforms and policy makeovers taken by the government. With another victory in elections 2019, the NRI fund inflow will further get a shot in the arm, thus increasing more confidence.
· Continuing With Reforms:
RERA is expected to be further streamlined. Faster/single window clearance, rationalization of taxes by merging stamp duty under GST and further augmentation of infrastructure are some of the do-ables which the industry stakeholders are reportedly expecting.
· Pushing Housing For All:
The government had pledged to build 29.5 million new rural homes and around 12 million urban homes when Housing For All was launched in 2015. The re-election of BJP will gain steady momentum on the ambitious project.
· Addressing Fund Crisis:
Drying up of liquidity following the collapse of IL&FS in September 2018 had affected real estate segment very badly. And industry experts are hoping that Modi 2.0 reign will bring in some relief.
“The real estate sector has high expectations from the new government to improve liquidity, balance fiscal discipline with stimulus, expedite resolution of stressed projects and streamline implementation of RERA (Real Estate Regulatory Authority Act),” Business Today quoted Aashish Agarwal, Senior Director, Valuation and Advisory, Colliers International India, as saying.
· Speeding Environment Clearance:
Industry experts reportedly want the government to take measures to expedite and streamline the environment clearances for the new projects, which is otherwise a two-stage process and takes two-to-three year. Many industry experts feel that government will emphasis on land acquisition reforms.
Overall, the Indian real estate is in high spirits over Modi 2.0 as it hopes that some of the government’s initiatives will now doubtlessly sail through to the final stage of fruition.