Prime Minister Narendra Modi has secured a third term in office, but the BJP fell short of a full majority by 32 seats, necessitating coalition support from key allies like JD(U) chief Nitish Kumar and TDP’s chief Chandrababu Naidu. This coalition victory has significant implications for the real estate market, bringing much-needed policy certainty and bolstering investor confidence.

The scale of the BJP’s victory has delivered unprecedented policy certainty, which is crucial for the real estate sector. Political stability and clear government policies directly influence investor confidence, affecting real estate investment decisions positively.

Key policies and reforms

New Tenancy Act:

The government’s new tenancy act has revitalized the rental housing market by introducing accountability measures and transparency in rental agreements.

Stressed Asset Fund:

The ₹25,000 crore stressed asset fund reflects the government’s commitment to addressing stalled housing projects. Offering priority debt has restored buyer confidence, leading to a swift revival of construction activities across major markets.

Credit Linked Subsidy Scheme (CLSS):

The extension of CLSS under PMAY until December 2024 has significantly boosted demand.

Realty Stress Fund:

The establishment of a ₹60,000 crore realty stress fund has provided crucial last-mile funding to builders, allowing them to resume construction projects.

RERA and Consumer Protection:

Institutionalization of RERA across states to enhance consumer protection and developer accountability.

Urban Infrastructure Initiatives:

Initiatives like Smart City, AMRUT, and Pradhan Mantri Awas Yojana (PMAY) have increased demand in the real estate sector post-elections. These efforts focus on improving urban infrastructure and providing affordable housing, thereby enhancing the quality of life in cities.

Structural Reforms:

Government’s focus on structural reforms to liberalize the economy, particularly in infrastructure and renewable energy sectors. Anticipated reforms in land acquisition and business practices are expected to attract increased investor interest and spur further growth in the industry.

Prime Minister Modi’s third term has brought stability and policy certainty, crucial for the real estate market. The government’s commitment to reforms and infrastructure development has bolstered investor confidence, leading to a positive outlook for the sector. With continued political stability and strategic initiatives, the real estate market is poised for significant growth in the coming years.

Congress leader Randeep Surjewala on Sunday accused Union Home Minister Amit Shah of “misleading” Parliament and the people of the country about the three new bills introduced in the Lok Sabha that seek to overhaul the country’s criminal justice system and demanded wider consultations on the proposed legislations involving legal experts and public. Surjewala claimed that without any prior intimation or public consultation or inviting suggestions from legal experts, jurists, criminologists, and other stakeholders, the Modi government introduced the three bills from its “black magic hat” on August 11. “The introductory remarks of the Home Minister gave away the fact that Amit Shah is himself out of depth, ignorant and oblivious to the entire exercise,” the Congress leader said.

“Other than some credit seeking and point scoring in desperation, a hidden exercise, away from the public glare or stakeholders’ suggestions and wisdom, cannot serve the public purpose of reforming the criminal law structure of the country,” Surjewala said. “After an extensive “scrutiny” of existing and proposed laws, he said the detailed definitions of terrorism and terrorist acts already exist since the time of Indira Gandhi and “the definition of terrorists in the IPC is an eyewash,” he said. On the issue of FIR against mob lynching, Congress leader alleged that Shah has given a “huge concession” to mob lynchers. “The BJP government has watered down the lowest punishment for mob lynching to seven years (under BNS, 2023), whereas the lowest punishment under IPC for such crime was life imprisonment,” he claimed.

Surjewala further claimed that the issue of sexual assault on minors, all provisions already exist and so does the punishment of 20 years for gang rape. “While the Bills have been referred to the Select Committee of Parliament, the Bills and its provisions must be thrown open for a larger public debate by judges, lawyers, jurists, criminologists, reformers, stakeholders and the general public in order to stay away from the trap of bulldozing the entire criminal law structure without discussion that is so ingrained in the DNA of the BJP government. We hope that better sense will prevail,” he said. Earlier on Friday, Amit Shah introduced the Bharatiya Nyaya Sanhita Bill, 2023, Bharatiya Nagarik Suraksha Sanhita Bill, 2023 and Bharatiya Sakhshya Bill, 2023, aimed at giving justice and protecting the rights given to Indian citizens by Constitution.

The bills will abolish the Indian Penal Code, 1860, Criminal Procedure Code, (1898), 1973 and the Indian Evidence Act, 1872 made by the British. The Home Minister said that Bharatiya Nagarik Suraksha Sanhita Bill, which will replace CrPC, will now have 533 sections. “A total of 160 sections have been changed, nine new sections have been added and nine sections have been repealed,” he said. The Bharatiya Nyaya Sanhita Bill, which will replace the IPC, will have 356 sections instead of the earlier 511 sections, the minister said, adding that 175 sections have been amended, 8 new sections have been added and 22 sections have been repealed. Bharatiya Sakshya Bill, which will replace the Evidence Act, will now have 170 sections instead of the earlier 167. Shah said 23 sections have been changed, one new section has been added and five repealed.