NaMo chanted that he couldn’t ensure development in states where BJP wasn’t in control. He asked for control to deliver development. He’s got his wish. Now he needs to live up to his promise. And if he does, realty in two big markets of Gurgaon and Mumbai could well see a sharp shift in fortunes.
Realtors are big supporters and financiers of electoral battles .
We had the former Chief Minister of Maharashtra clearing a slew of eyebrow-raising projects on the eve of his departure, many say, to curry favour of the powerful builder community. That he failed to lead his party to victory is purely incidental and only a matter of political interest.
The fact remains that realtors are a significant lobby for any political dispensation to deal with, and with the two states of Haryana and Maharashtra awarding the BJP a thumping win, all are waiting to see what measures the new dispensation will take to help the realty sector out of the mire.
The most logical step would be for the new State Governments to kick-start infrastructure projects. By removing the hurdles to commencement and completion of urban development projects, the ruling party can revitalise the realty sector. The biggest beneficiaries of such measures will be realtors and home buyers/owners in localities adjoining these new developments.
In Mumbai, for instance, expeditious implementation of the new airport and related projects could provide a big boost to the realty market in Navi Mumbai. In Gurgaon, steps to address power shortages could give a fresh fillip to realty values that have stagnated or drifted lower in the recent past.
What’s more, if the ‘ease-of-doing-business’ philosophy is extended from the Centre to the States, we could see more economic activity in these two States, which in-turn would translate into buoyancy and optimism in the realty markets.
In another State, Tamil Nadu, the political situation is quite different.
The ruling party has faced some setbacks due to ongoing court proceedings, while prominent members of the opposition, leaks suggest, might find their names listed among the Swiss “black money” account holders. Clearly that’s cause for some uncertainty.
While this may not seem to directly impact the realty market at the base, it is definitely likely to instil a sense of caution among big money players in the sector.
While one would not wish to advocate that home buyers should evaluate the political scenario before buying a house, it would be wise not to exclude this factor from the list of considerations when it comes to decision-making.
It might not lead you to change your decision, but it might help you to strike a smarter deal.
Formerly Editor, Outlook Business and Executive Editor, NDTV Profit, the writer is an entrepreneur with keen interest in personal finance. Mail propertyplus@thehindu.co.in
