Expressing confidence in the government's real estate initiatives, the sector has hailed the Prime Minister Narendra Modi-led government's victory in the 2019 General Elections as a vote for development.
Citing initiatives such as GST, RERA and the Affordable Housing for All by 2022 scheme, the sector expects institutional investments in the sector to double to $10 billion in 2019.
The impact of reforms has been reflected in the number of investments received by the real estate sector, as of the total institutional investments of $30 billion during 2009-2018, $20 billion was invested in 2014-2018. During the same period, the share of foreign investments more than doubled to 70 percent in 2018 from 31 percent in 2009.
"We are confident that institutional investments in 2019 will nearly double to $10 billion as compared to 2018," said Ramesh Nair, CEO & Country Head, JLL India.
The country is also likely to witness more REIT launches. Constructive REIT reforms since 2014 led to the successful listing of Blackstone-Embassy REIT in India. JLL had estimated that Indian office space holds a potential REIT able space of 294 mn sq ft.
"We expect more REIT launches in 2019. For institutional players, newer business around co-living, flex-spaces and PropTech are opening up, giving much hope and confidence in the India growth story," he said.
During its first term, the government had given a decisive impetus to all-around infrastructure development, major policy overhauls such as DeMo, RERA and GST, amended old Acts like Insolvency & Bankruptcy Code and the Benami Transactions (Prohibition) Act, and envisioned schemes like 100 Smart Cities, Housing for All by 2022, Make in India, AMRUT Cities etc.
"With Modi 2.0, we can expect the steady momentum that the real estate sector has been regaining in recent times to not only maintain its pace but pick up speed. Some of this government's initiatives will now doubtlessly sail through to the final stage of their journey," said Anuj Puri, chairman - ANAROCK Property Consultants.
The much-touted Housing for All by 2022 initiative's viability came under question because if it is to succeed, it needs sustained efforts from a determined government. "This mission could now actually see fruition if not by 2022, then at least towards the end of this new five-year term, he said.
Pradeep Aggarwal, founder and chairman, Signature Global India and chairman, ASSOCHAM National Council on Real Estate, Housing and Urban Development, said that the government has shown that it has good intentions to fulfil PM Modi’s vision of Housing for All by 2020 and that it is not only a slogan.
"The strong and steady government should bring about stability with remedial actions without much delay to revive the shock of last quarter economic growth. The stable government reflects the faith reinforced by the aspirational India which enhances the confidence index domestic as well as globally," said Niranjan Hiranandani, National President - NAREDCO and Managing Director - Hiranandani Group.
The sector hopes that the new government will redress and resolve the prolonged issue of liquidity crisis that the sector is facing currently. Moreover, rationalising the taxes by subsuming stamp duty under GST will grand a big relief to the home buyers.
"We highly recommend the National Housing Policy to boost rental housing in order to fulfil the ambitious target of Housing for All by creating surpluses," he said.
Subodh Runwal, director, Runwal Group is of the view that "this a vote for development and particularly for the real estate industry, it will provide housing for all before the next elections. We are also hopeful that in the ease of doing business related to construction permits and transparency we will be in the top 10 in the world."
The World Bank Doing Business Report (2019) rankings published in the last quarter of 2018 had ranked India 77th among 190 countries assessed on the Index. This had been a significant improvement from the previous performance.
"From policy overhauls to amendments in older acts to ensure that these acts are relevant in today’s times, the foundations laid down by the Government during its last tenure will bear fruit during this term and will further boost the growth of the country," said Anshuman Magazine, chairman and CEO, India, South East Asia, Middle East and Africa, CBRE.
A majority government is a strong point for economic growth as it instils confidence of continuance and unhindered policy decisions. "With the second term, we expect the government to continue with its growth policies including infrastructure development. We are sure the government’s focus on the Housing for All policy will be paramount," said Shishir Baijal, chairman and managing director, Knight Frank India.
"The NDA Government's return to power with a decisive mandate will reassure global and domestic investors of stability, certainty and continued focus on growth. The real estate sector has high expectations from the new Government to improve liquidity, balance fiscal discipline with a stimulus, expedite resolution of stressed projects and streamline implementation of RERA," said Aashish Agarwal, senior director, Valuation and Advisory, Colliers International India.
Prashant Solomon, MD, Chintels India said that the election results have renewed optimism across the country. "For a growing economy like ours, the stability of the government is very important in order to facilitate the implementation of regulations such as RERA, REITs among others for the sector to function transparently and grow organically."