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Report Suggests Lok Sabha Elections 2024 to Drive Housing Demand in India
Lok Sabha elections in 2024 are expected to drive housing demand in India, backed by strong economic growth, regulatory reforms and optimistic homebuyer sentiments.
The upcoming Lok Sabha elections in 2024 are expected to boost the housing market in India, as suggested by a report from ANAROCK India. This anticipation builds on the significant growth observed during the previous election years, 2014 and 2019, where housing sales and new launches saw a remarkable increase, highlighting the impact of the Lok Sabha elections on housing demand.
Introduced in 2016, the Real Estate Regulatory Act (RERA) has played a crucial role in reviving the real estate sector by implementing necessary regulations, enhancing buyer confidence. Now, with the majority of these reforms in place and the International Monetary Fund (IMF) forecasting strong GDP growth for India, the real estate market is all set for further expansion.
Historically, both 2014 and 2019 being election years, witnessed a surge in housing sales and new launches, indicative of trends in the real estate market during election cycles. For instance, 2014 saw a record number of new launches at about 5.45 lakh units, with sales of approximately 3.45 lakh units in the top seven cities alone. Similarly, 2019 saw sales of about 2.61 lakh units with new launches at approximately 2.37 lakh units, marking a recovery from a downturn between 2016 and 2019.
The stability in inflation rates and a growing economy have also contributed to increasing homebuyer confidence. ANAROCK India’s analysis on housing sales during election years highlights a positive outlook for the residential market in 2024, predicting it could reach new heights in terms of sales and launches.
Developers are responding to the rising demand by securing land deals, with 97 deals closed in 2023, targeting residential development across various cities. This expansion is supported by substantial price growth in the housing market, with 2023 seeing an increase of 10-24% in the top cities, indicating a rise in housing demand in India during elections.
With the election announcement, the rush among homebuyers to finalise deals has intensified, reflecting a 15% increase in such activities, particularly noted in Bengaluru. This trend is primarily driven by end users with a major focus on affordability, hinting at the growing housing demand post Lok Sabha elections in 2024.
It is anticipated that positive results from the election would further enhance the user's confidence, encouraging more individuals to invest in homes sooner rather than later to avoid future price hikes.
