The poll results for the Assembly election conducted in Haryana have been recently announced. Although not shocking, the results indicate considerable restructuring in the functionality of Haryana’s government. However, market experts are quite divided about the fate of real estate market in Gurgaon.
Gurgaon is one of the largest property markets of the country and incidentally a part of Haryana. Maharashtra (Mumbai and Pune) and Haryana combined form 30 plus percept of the real estate India. Experts have predicted that the poll results may not impact property rates in Gurgaon per se, but it would certainly speed up policy clearances and infrastructure projects which are important for real estate. Because the results have been favourable for the people of Haryana, both developers and buyers have much to rejoice about. The results were announced on Sunday, October 19, days before Diwali, one of the biggest days for transactions in real estate market. The favourable results may clear projects and bring in new announcement during this auspicious period, people reckon.
Since key decisions such as overhauling floor space index in the state of Haryana have been kept on hold for conducting the elections peacefully, matters are likely to speed up once a stable government has been formed. Experts feel that the new government would adopt initiatives which would better the realty sector of Gurgaon, Manesar, Sonepat and other important industrial centres of Haryana. Infrastructure initiatives, clearances and amendment of state laws for real estate may be quicker for Haryana. The determining factors are how fast the state government is formed and their ability to take stock of the situation in the real estate sector.
However, a lot of market players believe that not much would change due to the declaration of poll results. When the Lok Sabha 2014 results were announced, experts predicted that the real estate market pan-India would pick up within 9 to 12 months of formation of a stable government. On the contrary, Gurgaon property markets, quite like the rest of India, have been slow, with the city churning out only 8,000 units of new flats compared to Mumbai’s 17,600 (as per CBRE data) for the first half of 2014. Buyer sentiments aren’t particularly bullish and the results of the state election may not move them at all. The combined factors of Diwali and other festivities along with a majority party government in Haryana may be able to make buyers more positive about residential and commercial real estate Gurgaon. Since the period predicted is yet to be completed, it would be too early to predict the sentiments.
If incentives such as affordable housing for the low income and middle income group and infrastructure development (such as completion of the Dwarka Expressway) are offered to buyers, there is a good chance that realty market in Gurgaon would revive quickly. Investors and market experts are expecting path breaking reforms to be implemented in Gurgaon by the newly formed government.
Only time will tell whether improved policies and infrastructure initiatives would be adequate for enticing buyers and investors back into the real estate market of Gurgaon.