Due to general elections 2014, construction activity has reduced as most of the builders are funding to support the election campaign and also several real estate companies are being affected by the slowdown in country’s economy.Hence, builders are cash-strapped and because of which many projects have been stuck and delayed in completion. Considering past elections, the real estate industry would have funded more to the present general elections and one of the real estate consultants says that huge amount of cash that does not fall in account would be funded to elections from the real estate industry.
According to a report by Association for Democratic Reforms, about one-sixth of fund has been donated by real estate, power, and oil firms during 2004-2005 and 2011-2012. The downcast of real estate sector in the last half of 2013 and in the first quarter, many builders are unable to fund the general elections.
The compelled funding to elections and the effect of depressed economic has cut down the progress of current projects leading to the delay in completion of projects especially those projects that were started during the approaching elections.This is likely to affect the buyers with possible delay in possession and loss of interest on investment.
It is also anticipated that few major builders would raise the property price post-election in order to produce fund for their upcoming projects and also small builders are likely to follow the same. Buyers are advised to be cautious for such price increase post elections.
Some large builders might increase the property price just after the elections in order to generate revenue for funding upcoming projects. This move might encourage small builders to follow suit. Buyers should watch out for such price rise sometime after the current elections.
An optimistic consequence for industrial growth in India in the current elections would boost investments and many rise property prices in India and drive national and international investments into the real estate sector.
The schemes of some parties also talks about proposed investment of $1 trillion in infrastructure in the next decade to add international standards and quality to the infrastructure developments in India that will boost foreign investment and will make developers to look beyond residential development projects.
Yet, few prime aspects that would affect the real estate in India like piled up inventory and concentration would not alter post-elections but it won’t be for want of trying. The shortage of fund is likely to reduce the demand for construction resources because of which the value of the resources will decrease and would last for few months post elections.
Hence, it is considered as the right time to buy construction resources for those who have planned to build houses. And, for buyers it is the proper time to buy a property as cash-strapped builders would sell their projects at lower price in order to produce cash to fund election campaigns.
According to a report by Association for Democratic Reforms, about one-sixth of fund has been donated by real estate, power, and oil firms during 2004-2005 and 2011-2012. The downcast of real estate sector in the last half of 2013 and in the first quarter, many builders are unable to fund the general elections.
The compelled funding to elections and the effect of depressed economic has cut down the progress of current projects leading to the delay in completion of projects especially those projects that were started during the approaching elections.This is likely to affect the buyers with possible delay in possession and loss of interest on investment.
It is also anticipated that few major builders would raise the property price post-election in order to produce fund for their upcoming projects and also small builders are likely to follow the same. Buyers are advised to be cautious for such price increase post elections.
Some large builders might increase the property price just after the elections in order to generate revenue for funding upcoming projects. This move might encourage small builders to follow suit. Buyers should watch out for such price rise sometime after the current elections.
An optimistic consequence for industrial growth in India in the current elections would boost investments and many rise property prices in India and drive national and international investments into the real estate sector.
The schemes of some parties also talks about proposed investment of $1 trillion in infrastructure in the next decade to add international standards and quality to the infrastructure developments in India that will boost foreign investment and will make developers to look beyond residential development projects.
Yet, few prime aspects that would affect the real estate in India like piled up inventory and concentration would not alter post-elections but it won’t be for want of trying. The shortage of fund is likely to reduce the demand for construction resources because of which the value of the resources will decrease and would last for few months post elections.
Hence, it is considered as the right time to buy construction resources for those who have planned to build houses. And, for buyers it is the proper time to buy a property as cash-strapped builders would sell their projects at lower price in order to produce cash to fund election campaigns.
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