Polls and Property – Seizing the Election Opportunity in Real Estate

POLLS

Akash Pharande, Managing Director – Pharande Spaces

As India gears up for its upcoming general elections, optimism and anticipation are evident across various sectors, and the real estate market is no exception. Historically, India’s general elections have been a time for positivity – after all, every political party in the fray pledges to boost economic growth and improve infrastructure. These commitments invariably lead to a positive sentiment in the housing market.

How will the upcoming elections impact India’s housing market, and why this be the perfect time to make a home purchase? Let’s examine.

Surging Investment Optimism

Election periods in India are typically marked by increased public spending and promises of economic reforms, which tend to boost consumer confidence and spending. A stable government and the implementation of favourable policies create an environment ripe for investment – especially in the real estate sector. To capitalize on this optimism, developers often launch new projects or offer attractive deals and discounts to homebuyers.

Policy Reforms and Infrastructure Development

Today, election manifestos emphasize infrastructure development and pledges to usher in structural reforms. The result of such measures is enhanced connectivity and improved urban infrastructure, which directly benefit the housing market by making homeownership more accessible and appealing.

The development of roads, public transport, and utilities boosts the value of residential areas, turning even peripheral areas into attractive investment options. In short, they will see price growth.

Improved Liquidity and Financing Options

In the run-up to elections, there is typically an increased focus on financial inclusivity and easing of credit conditions to stimulate economic growth. Banks and financial institutions often roll out special home loan offers, reduced interest rates, or more favourable terms to encourage home buying.

This increased liquidity and the availability of financing options make it easier for aspiring homeowners to take the plunge.

Favourable Regulatory Changes

The government’s focus on housing and real estate development often leads to regulatory changes aimed at protecting buyers’ interests and boosting the sector’s growth. For example, the Real Estate (Regulation and Development) Act in 2016 was delivered by a new government elected in 2014, and it bought considerable transparency and accountability to the real estate sector.

Such policy reforms create a better environment for homebuyers and encourage investment in real estate. When such confidence-boosting reforms are implemented, we invariably see a rise in housing prices. Likewise, post-elections economic growth results in increased demand, which results in price growth.

However, in the period leading up to the elections, developers may often look to draw buyers with attractive prices, offers and discounts. This period can present a unique window of opportunity for investors and homebuyers to negotiate better deals before the anticipated post-election boom.

In short…

The period between now and the general elections is a strategic window for of opportunity to buy a home before prices rise. Moreover, the potential for property value appreciation post-elections signals significant returns on housing investment in the future.

Buying a home now, amidst the anticipatory positive trends, can not only secure a valuable asset but also leverage the market’s upward trajectory post-elections. Historically, the real estate market’s positive response to the general elections represents a strong connection between political milestones and economic growth.

One Time Sanction of Drawings for Real Estate Projects in Himachal is enough

New Delhi, 5th February 2024: The Real Estate Regulatory Authority (RERA) of Himachal Pradesh has conceptualized the time limit of sanctioned drawings for Real Estate Projects, for which the earlier time limit for constructing such projects was 3 years. Henceforth, the State Government holds that once drawings sanctioned for Real Estate in housing projects in the state are obtained, their renewal is not mandatory.

The above disclosure was made by the Chairman of RERA Himachal Pradesh, Dr. Shrikant Baldi, at the second day of the 16th Naredco National Convention, “Fostering Trust with Transparency; Pathway 2047,” held on Saturday. He added that the government of Himachal had already extended such a deadline from the earlier period of 3 years to 5 years some time back.

RERA Chairman- Shrikant Baldi

Given the tempo and enthusiasm with which the real estate sector has begun to grow at a rate of approximately 10 percent per annum in the recent past, the RERA of Himachal Pradesh approached its government and succeeded in persuading it to make the validity of once sanctioned drawings for real estate and housing projects an endless period of time, said Dr. Baldi.

Dr. Baldi, who is also the President of the All India forum of RERA, further informed that this was the demand of developers in general and other stakeholders, and the sustainability limit for sanctioned drawings was extended for a great deal of period for a win-win situation. The government of the state permitted its RERA to undertake the proposed move incorporating necessary changes in the state’s town planning statutes.

The Chairman also informed that the RERA of the state does not accept physical documents for registering any housing and real estate projects, nor does it entertain any requests for complaint lodging by any stakeholders in Real Estate. Instead, it entertains compliments and complaints online to ensure that transparency is strictly observed in every format through which real estate activities are permitted in the state.

According to him, the aforementioned steps are mooted at the All India level because real estate, in general, has started looking up from the level of 7 percent last year to that of 7.3 percent presently. Similarly, investors in this sector are upbeat given its growth, with bank credit showing an upward trend for the sector from 7.3 percent of the national GDP in the last year to that of 8.7 percent.

In his welcome remarks, President Naredco Mr. G Hari Babu pointed out that real estate and construction activities have to be given preferential treatment across the country because they contribute massively to the national GDP and national growth, with a particular focus on employment.

Mr. Babu, however, pointed out that approximately Rs 1 lakh 50 thousand Crores have been deposited with various governments by real estate developers throughout the country as labor cess. The objective of creating such a fund was to be utilized for the benefit of their labor and their wards, as each developer is required to contribute 1 percent of the project cost to the respective state government. However, the fund is hardly serving the stated objective, and the money is languishing. Therefore, steps are needed to utilize this fund.

Shaping Success in Real Estate: The Enduring Principles and Vision of Blitzkrieg Co

Mr. Pankaj Narang

In conversation with, Pankaj Narang, Founder & Director, Blitzkrieg Co.

In this insightful discussion, we delve into the core values shaping the company’s growth, its impactful contributions to community development, innovative marketing, adept handling of industry challenges, and the strategic foresight guiding its trajectory in the ever-evolving real estate landscape.

Can you provide insights into the founding principles of Blitzkrieg Co. and how they have guided the company’s growth and development over the years?

Values, transparency, and trust are the 3 core principles on which Blitzkrieg Co started. These core principles define us and guide us, transparency with our developer partners and customers a trusted relationship, and delivering values for both our developer partners and customers we have been very particular in timing up with developers who have the vision to deliver a quality product and similarly we help our customers to find their right home in our developer partner projects r association which developer is not a short term we are involved from concept to possession hand holding the developer and customer along the way. These principles have helped us to get the entire portfolio of our developer partners and drive 30% plus referral business.

In what ways has Blitzkrieg Co. contributed to the local community or urban development through its real estate projects?

We work with developers who are focused towards the development of community and improvement of micro-markets. However, the values that we bring into our undertakings are tangible and persistent. Like for instance, in Samarth Aura in Bhandup, the sales value we generated was huge. To ensure a good quality concrete road was established around the project (our developer partner made sure this), thereby creating a beneficial impact on our development and the general surrounding infrastructure as well.

Our resources recruiting policies encouraged to achieve their full potential has been a consistent action on our part. Our vision is clear: We grow when our team members grow. This is our collective desire and we must attain it.

Could you share an example of a real estate project where innovative marketing and sales strategies played a crucial role in achieving success?

As the world emerged from the pandemic, we took the opportunity to plan projects tailored to the changing lifestyles of our customers. Adapting to their evolving needs, we implemented the concept of ‘blissful living’ in one of our projects, Samarth Aura in Bhandup. The project features 60 amenities, and our marketing campaign highlighted ’60 Reasons for Blissful Living.’

In another project, our marketing strategy, ‘Rise Above the Ordinary,’ resonated well with the aspirations of the current middle class, proving successful in our Vikhroli project.

We also observed that while customers appreciate the projects, their financial understanding of home buying is still at an early stage in India. To address this, we created extensive and innovative financial offerings to assist customers in realizing their dream homes. These sales strategies have been instrumental in the success of all our projects.

Our sales approach follows a simple strategy, contributing to strong performance in the current market. From pre-sales to sales and post-sales, providing exceptional customer service has been the cornerstone of our strategy. This approach has not only helped us achieve impressive sales numbers but has also generated remarkable referral business, as customers appreciate our assistance in realizing their dream homes

Can you discuss any challenges or obstacles Blitzkrieg co. has encountered in the real estate market and how the company has overcome them?

The most significant challenge facing the real estate industry right now is acquiring the right resources for projects, which is crucial for project success. We have successfully overcome this challenge through our employee-friendly policies, placing people at the core of our business. By providing immense opportunities and assisting our employees in reaching their aspirations, we have seen individuals progress from starting as telecallers to becoming sales champions and closing managers. Our core principle is centered around employee-friendly policies, giving our team the space and trust to grow, and guiding them along the way, aligning with the core values we mentioned above.

What advice would you give to individuals or businesses looking to invest in real estate, considering the current market dynamics and trends?

Real Estate Hi Real Hai – real estate is a tangible asset that you can touch and feel. It has delivered amazing year-on-year returns, making it a continuously growing sector and a key driver for India’s journey to achieving its 5 trillion-dollar economy status.

For individuals or businesses looking to invest in real estate, here are a few crucial points to consider:

1. Due Diligence of Paperwork: With the advent of RERA, due diligence, including approvals and agreements, has become more streamlined. We also conduct our due diligence when partnering with developers.

2. Developer Legacy: Consider the developer’s past projects, delivery timelines, and the quality of construction. Investigate what existing customers say about them.

3. Micro Market Understanding: With evolving technology, one can analyze the transactions in a specific micro-market to make informed decisions about pricing for their dream home.

4. Engage a Reliable Broker: Find a good broker who can help you secure the right deal for your real estate investment.

Can you share your perspective on the importance of branding and brand identity in the real estate industry.

In real estate, having a strong brand and identity is like making a great first impression. It helps your business stand out, builds trust, and makes people remember you in a sea of options. Brand identity includes everything from your logo and colour scheme to the way you communicate and the values you emphasize. it’s about crafting a cohesive and appealing package that makes potential clients remember and choose you over others. In a competitive industry like real estate, a strong brand can be a game-changer, it’s about creating a consistent and positive image that sets you apart.

A positive brand has helped garner higher sale price in same micro market vis a vis competition, hence focussing on building brand should be taken very seriously by developers.

How does Blitzkrieg co. foster a culture of innovation and continuous improvement within the organization to stay competitive in the real estate market?

Blitzkrieg Co fosters innovation and continuous improvement by having sales and marketing advisors operate from project sites, gaining real insights from customer interactions. With a focus on being product-driven, the company emphasizes adapting to evolving needs and changing lifestyles. Flexibility is the key, demonstrated by the swift adoption of virtual tools during the pandemic. Continuous learning is a priority, as sales and marketing advisors stay agile, tech-savvy, and committed to ongoing improvement to remain relevant in the dynamic real estate industry. Every employee has the freedom to provide their inputs. These inputs are welcomed, assessed, and used to drive better business processes.

Looking ahead, what is the vision and long-term goal for Blitzkrieg co. in the evolving real estate landscape.

Our vision is to meet the short-term needs of developers, i.e., the sales of inventories, while concurrently working towards the long-term goal of creating a better brand for our developer partners committed to delivering quality products. We aim to be a one-stop solution for our developer partners and customers, all while staying rooted in our values.