With elections looming in Haryana by 2024, the real estate sector is going to enter a period of uncertainty for the investors, homeowners as well as developers. Though knowing how such elections are going to affect the market can help some of the necessary financial decisions taken at this moment.

1. Election Effect: Delaying and Uncertainty

One of the first and foremost effects of an election year is that the Model Code of Conduct is in place, which can slow down some crucial sanctions like licenses and Occupancy Certificates. The developer will naturally take a little more time and henceforth, the project timeline is dragged on with increased holding costs. In some cases, it may postpone the possession dates forcing homebuyers to delay their financial arrangements if they are dependent on home loans.

2.A Reluctant Market: No New Launches

For example, developers tend to wait and observe during election periods because the election results may be unclear or ambiguous. Waiting and observing tend to freeze the launch of new projects; thus, opportunities for investors are curbed and liquidity for existing homeowners who may want to sell is affected.

3.Infrastructure and Development Delays:

Infrastructure projects play a vital role in offsetting the depreciation effect in real estate investment values. Elections usually slow down infrastructure projects. The slowdown sometimes creates an impediment in property prices, especially in those economies that significantly rely on new infrastructure upgrades. Investments could face delayed returns in emerging markets.


4.Delayed Policy Announcements Effect:
The MCC does not provide an opportunity for a government to announce new development programs that might become available in the future, thus leaving a void of information of sorts for the investor and developer. Hence, uncertain times can delay crucial and much-needed regulatory changes by putting investors on tenterhooks with their decisions that may, in turn, make them miss market opportunities.

5.Market Activity and Property Prices:
The general pattern of election periods is very low trading, thereby stagnating or even dropping the price of property during these times. While homebuyers may receive better deals, sellers are left to wait for much longer times and offers that are lower than what they want.

6.Post-Election Surge:
Historically, a stabilization of the market post-elections usually sets off a frothy tailwind of increased activity as new policies are unfurled. For those investors able to take a long-term view, it will represent an enormous opportunity set as the market absorbs the priorities of this new government.
 
7.A Threat to Affordable Housing:

The election period can also create a delay in the availability of subsidies and incentives for the affordable housing sector. The main sector targeted is middle to lower-income groups. Those buying in this segment, therefore, ought to look at acquiring financing options that can be ready in case of such delays.

8.Shifts in Political Priorities:

The outcome of the election can shift areas where the new government will focus more on developing, affecting places or regions where real estate growth occurs. Keeping track of shifts in these areas is essential for making timely investment decisions.

9.Consumer Confidence and Market Sentiment:

Elections instill apprehension, often leading to hesitant customers crossing off a possible purchase. It typically manifests itself as an eroded market and influences developers reliant on healthy sales cycles for financing their projects.

10.Policy Change Readiness:

Once the new government finds its footing, substantial policy shifts will likely emerge in terms of property taxes, the governing laws on land acquisition, and the mandates related to urban planning. Stakeholders and homeowners need to incorporate these changes into their plans.


Conclusion: Walking Through the Uncertainty

Keeping an eye on how such a fluid political environment might impact project timelines and market dynamics will be crucial before the 2024 Haryana elections. If stakeholders can adjust to this fluid political environment, then they may be even more confident about navigating through this uncertainty and being in a better position to take advantage of opportunities once the polls are over.