"Real Estate Sector Hopes for Continued Focus on Infrastructure and Affordable Housing"

Election 2024 Results: Real Estate Leaders Urge New Government to Prioritize Affordable Housing and Infrastructure

Following the 2024 Lok Sabha election results, industry leaders in the real estate sector have emphasized the need for the new government to maintain a strong focus on infrastructure development and affordable housing. G Hari Babu, the National President of NAREDCO, highlighted the sector's growth potential and challenges, urging the government to support the industry's aim to reach a $1 trillion market size by 2030 and achieve net-zero carbon status by 2047.

The real estate sector is optimistic that the new administration will continue prioritizing infrastructure development, reducing home loan interest rates, emphasizing affordable housing, and providing tax incentives for sustainable development. Anuj Puri, Chairman of Anarock Group, noted the importance of a stable government to ensure the smooth progression of ongoing projects and investments in infrastructure, which are crucial for unlocking the potential of both current and emerging markets.

Pradeep Aggarwal, Founder and Chairman of Signature Global (India) Ltd, expressed confidence that as India continues its trajectory as the fastest-growing large economy with a GDP growth of 8.2% in FY24, the government will extend its focus on real estate and infrastructure beyond metropolitan areas. These sectors, he pointed out, have significant multiplier effects on the broader economy.

Reacting to the election results, G Hari Babu emphasized the importance of making affordable housing more accessible. He suggested that adjusting financial limits and providing incentives to builders are essential steps for the sector's progress. The rising home loan interest rates, which have increased from 6.25% pre-COVID-19 to around 8.75%, have made monthly EMIs burdensome, particularly for middle-class families.

To address this, Babu proposed that the government offer relief by setting the first ₹20 lakh or ₹25 lakh of a home loan at a 5% interest rate for the first five years. This measure would significantly reduce the financial strain on homebuyers and boost the affordable housing segment.

The real estate industry consistently seeks stability in government policies to ensure uninterrupted progress in infrastructure and housing projects. Leaders in the sector believe that with continued government support, the real estate market can thrive, contributing substantially to India's economic growth and development. 

For further reading, explore "10 Things You Should Know About the Impact of Elections on the Real Estate Sector."