As elections approach property buyers turn fence sitters
Although real estate majors claim that the polls this year have aggravated the slowdown. Businesses ranging from print media to SUV-makers do brisk business if elections are around the corner.
Large listed developers such as Mahindra Life space said as property sales turn sluggish in the election months, they were putting new projects on hold until June. Real estate portal India Property.com claims that many projects in North India are now on hold, though the trend is less pronounced in the Western and Southern regions. This is in contrast to launching three projects selling 4.5 lakh square feet of space in the first three months of last year
A real estate advisory, this comes on the back of new launches being cut in half to 57,000 units last year in the NCR, as per data from Colliers International.
Labour shortage
Arvind Jain, Managing Director of Pride Group says, “Many of them have already gone home because of Holi Festival and they will be returning only after elections, causing a shortage of about 20- 25 per cent,” Construction activities also tend to slow down during elections due to labour shortage, as workers head back to their villages and towns to vote.
The impact of elections is limited to the effect on economy and nothing else is different this time, says Bharat Dhuppar, CMO, Omkar Realtors and Developers. Still, Mumbai-based Poddar Developers, which builds affordable homes and Omkar Realtors which focuses on luxury homes are not changing their plans.
Once elections are done, decisions to go one way or another will be taken, says Kalpana Murthy, Associate Director, Residential Services, Cushman & Wakefield.
While developers are hopeful about a pick-up in the later part of the year, they are, just like stock market investors, hoping for a decisive verdict.
Source: The Hindu Business Line
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