As General Elections are round the
corner in India, speculation market is also high about the Real Estate scenario
post elections. Only time will show whether property market will experience a
boom or bane or remain intact. But till then, let’s do our work, speculate
based on analysis! Please note that we will not support any political party in
this post, but just give our opinion on Real Estate influence.
Various Scenarios Post-Elections
There can be only following 2 scenarios
after General Elections:
- Existing Government is reelected
- New Government is elected <link>
In both the scenarios there ought
to be some changes in the existing market, both economic & financial. Of course
the change would be more apparent changes in case the government is upturned. It
is a known fact that Property market is highly affected by the health of
economy & finance in the country.
Effect of Financial & Economic Market on Real Estate
Financial Market
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Economic Market
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This comprises of securities, stocks, trade and
exchange rate markets in a country. Basically all the investments of the
nation come under the financial markets.
Financial Market controls the wealth of a nation
and its citizens which in turn affects the investment in real estate.
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This includes the interest rates and policies
formulated by the Reserve Bank of India (equivalent to Federal Bank). The
rates at which loans are disbursed come under its scope.
This decides whether an individual or a group
will be able to finance the investment and to what extent.
Real Estate will definitely get affected in this
case also.
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In the above discussion, we have
shown that financial and economic markets will experience changes after
elections, which in turn will impact the property prices. Many of you must be
wondering whether this impact would be positive or negative! The answer is – “we
don’t know!!” Positive or negative, high or low – everything will depend on the
policies that the government forms.
One thing we can say with 100%
confidence is that there will be changes in real estate scenario in India for
sure and historically it has been seen that a change results in better.
So choose your votes rationally!
------ Thanks for
reading RealT Horizon :) ------