Real estate News India: With only a week left until India’s general elections, the country’s property sector appears to have slumped of late, according to analysts.
As the nation prepares to elect a new prime minister, advisory firm Colliers International reported India’s property sector has faced a slump, with new launches being cut in half in the National Capital Region. Only 57,000 units were launched last year, per Colliers International research.
Some realtors and developers are putting some of their projects on hold at this time as approval for new developments get delayed during elections, when government offices are focusing their resources on the upcoming polls and investors are diverting their funds to election campaign contributions, Reuters reported.
A number of construction workers and contractors are also set to take leave in order to vote in their respective hometowns, affecting the timetable of developments.
“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 to 25 percent,” says Arvind Jain, managing director of Pride Group.
High vacancy rates have also affected India’s property market. Some developers are waiting to sell their properties after the elections, when the economy is expected to slightly improve, according to The Hindu Businessline.
Some analysts claim, however, that the slowdown has not affected the whole industry.