On November 26, 2016, the Modi Government completed half-term. In its recently released Setting the Stage for Indian Realty: Modi’s Mid-Term Performance Report, JLL India rates the Government’s performance at half time with specific reference to the real estate sector. The report measures the promises made in the election manifesto against what has actually been delivered to date, and also takes a view on which promises look less likely to be delivered.
The Government’s performance has been analyzed on certain key parameters related to real estate, such as:
- Progress on the GST Bill
- Regulations & Transparency
- Infrastructure Deployment
- Affordable Housing
- Smart Cities
The report gives an overall scoring of 64% to the Modi Government at mid- term. It has performed well on parameters like Regulations & Transparency and Investments, while the laggards have been Affordable Housing and Land Acquisition Rehabilitation and Rehabilitation Bill (LARR). The other parameters like Infrastructure, Make In India and Smart Cities have been average performers.
It presents an analysis of the Election Manifesto, which looks at the short, medium and long term goals of the Government. On the basis of analysis of sub-parameters:
• On short term goals such as price stability, employment and entrepreneurship, easing policy paralysis, corruption and black money, etc., the Government has performed well. Inflation is under control and corruption and black money are perceptibly being driven out.
• Under the medium term goals like having states work in collaboration, involvement of people in governance, etc., there is limited progress.
• On long term goals like improved quality of living for people, there is again limited progress.
The recent demonetization drive has definitely helped the Government score well on regulations and transparency. Ramesh Nair, COO – Business & International Director, JLL India says: “The report takes a holistic view of the continued political will towards reforms in the real estate sector - and the very real challenges the Government faces. Whether these challenges be in the form of resistance from State Governments, differences in interpretation of the law or the sheer volume of the tasks undertaken, the report does a deep dive into each of these.”
The real estate sector’s performance for residential, commercial, retail, hospitality as well as industrial and warehousing has been analyzed. The report concludes with a view of an overall revival and steady pace of growth for India’s real estate markets under Modi’s Government.
Source: JLL India