Impact of Lok Sabha Election Results - Mr. Sachin Sandhir, MD of RICS India

Below-mentioned is the quote from Mr. Sachin Sandhir, Managing Director & Country Head – RICS India

"What will be the impact of Lok Sabha poll results from a real estate perspective and what will it mean for a Home Seeker?"

The government has already taken several steps to provide relief to the real estate sector and stability under the same policymakers will ensure that announced initiatives meet their logical conclusion. With the philosophy of the UPA government being interest of the common man, we are hopeful that the government will introduce measures towards affordable housing such as further reduction in interest rates, increasing the tax rebate on home loan interest rates from Rs 1.5 lakh to Rs 3 lakh, increasing the limit of priority sector lending to upto 35 lakhs. Providing infrastructure status to residential townships and according Industry status to the sector will facilitate easier bank finances for these projects which will help bridge existing housing shortfall. Long impending reforms including passing of the land acquisition, rehabilitation and resettlement bill and model real estate regulations bill will help restore customer confidence and attract FII in Indian real estate. The return of the UPA government in to power will help attract FII's money back to the domestic market and will arrest the steep fall in realty prices and will help stabilize prices over the next three to six months. In addition to the above, the setting up of Real estate Investment Trusts (REIT's) would go a long way in institutionalizing Real estate, improving transparency, processes and liquidity in the market.

Source : Equity Bulls

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