Elections 2024: Affordable housing gets boost as real estate embraces stable policies, says experts

The early trends for the recently concluded 18th Lok Sabha elections, which anticipated the continuity of the incumbent government's ongoing policies, have sparked optimism in the real estate sector. This anticipation of policy continuity brings a sense of hope and assurance of predictability, which is crucial for the sector's growth and stability.
 
The current government had, over the last two terms, made significant strides on the policy front, and in the development of the nation. Anuj Puri, Chairman of ANAROCK Group, says, "The economy grew with major investments into developing the country. The real estate industry always looks towards a stable government that will ensure no interruptions in the ongoing schemes and investments into infrastructure development. This, above everything else, unleashes the real estate potential of current and developing geographies."
 
The interim budget indicated that with the government’s policies unchanged, the mid-segment housing sector would witness targeted action and policy alignment that would lead to further growth of India's housing sector. Puri said, "The mid-end (homes priced Rs 40 lakh to Rs 80 lakh) and high-end (homes priced Rs 80 lakh to Rs 1.5 crore) segments together recorded sales of 76,555 units in Q1 2024 which accounts for a share of nearly 59% of the total. The cumulative share supply for these segments in Q1 2019 was 47%."
 
"With government continuity, we can look forward to a major boost for the affordable housing sector, this being a flagship scheme that had not fared well over the last term. Affordable housing (homes priced under Rs 40 lakhs) sales in Q1 2024 recorded 26,545 units, which is just 20% of the total sales. Concurrently, supply in this critical segment had also dropped from 44% in Q1 2019 to 18% in Q1 2024, added Puri.
 
Industrial and logistics parks, along with warehousing, are poised for further growth support. With an increased focus on manufacturing and improved connectivity, this sector is brimming with potential to meet the rising demand. This exciting prospect inspires confidence and excitement for the future of these sectors.
 
Tourism and hospitality had also emerged as a big focus area for the government, as strongly indicated by the preliminary announcements in the interim budget earlier this year. This industry, too, looks forward to these plans being implemented as planned.