Today, the archetypal construction landscape in India appears devoid of any heavy-duty construction activity. Workers are seen in a state of respite, and equipments and vehicles remain parked. While recent homeowners fume at the delay in construction, builders cite excuses including inflation, elections, and bureaucratic or governmental concerns. It is evident enough that although it is a time of inertia in the world of construction, it is business as usual. It is just that almost all builders and real-estate organizations have shifted their focus on funding political parties in their campaigns at the moment. Amusingly and interestingly enough, a 2011 study shows that the level of cement consumption – the yardstick for construction activity dips to about 12 percent during elections and this time is no exception. If you have considered buying your dream house or apartment, it might just be the appropriate moment for you to get the best deal possible. All that you’ve got to do is find out enough about which political parties the builders are pitching in for. And here is why.
As India goes to the greatest poll ever, a pall of financial uncertainty looms large over the real estate industry in the country. At this stage, real estate and construction companies are pinched for cash as many of their projects are stalled at least until the elections are over. Now the returns and stakes are high; if the party of their support rose to power and glory, the particular builder would’ve struck their Midas touch. In other words, it would mean winning the right land deals and acquisitions through them, especially in hotspots like the NCR region around New Delhi. Here money and power are the game changers; for instance, if your builder won contracts through their political affiliations after the elections, you would also earn the slice of a nice plot of land and your home would be built in no time. However, there may be a downside to it too. If your builder’s party of support did not gain political prominence post the 2014 elections, it may take a while for you to have your house completed.
There is a surge of the Modi wave – India’s Prime Ministerial candidate from India’s opposition party, the Bharatiya Janata Party or the BJP. He is expected to usher in both political and financial change if he were to come to power. The market promises growth and despite the yearlong dip in the construction industry’s profit in the cases of DLF and Oberoi Realty, the industry has made some gain too. Therefore, with some amount of business wisdom and caution, you can seize the moment and take a plunge on buying a new home.