Murugan has been eyeing a plot on the outskirts of Coimbatore for almost a year. His friend called him last month and said “Wait for the elections to get over. Land prices will drop.” Another friend said the exact opposite “Buy now before prices shoot up after results.” Murugan is confused. And honestly, so are many buyers across India.
So what actually happens to land prices during election time? Let’s find out.
Why Elections and Land Prices Get Talked About Together
Elections bring money into circulation and a lot of it moves fast. Political parties spend heavily on campaigns, rallies, and logistics. Some of that spending flows into local economies, creating a temporary buzz in markets including real estate. But here is what most people miss. It is not the election itself that moves land prices. It is the uncertainty around it.
When election results are unpredictable, big investors and developers tend to pause. They wait to see which government comes in and what policies follow. This pause can actually slow down transactions temporarily sometimes even cooling prices in high-activity zones.
What Really Drives Land Prices Up Around Elections
The real story is about infrastructure promises. During election season, announcements flood in new highways, metro extensions, industrial corridors, smart city projects. Even an announcement, before a single brick is laid, can push land prices up in the surrounding areas overnight.
Sellers in those zones become reluctant to close deals quickly. They hold on, expecting prices to climb further once the winning party follows through on promises. This speculative behavior not the election itself is what creates price movement.
After the Results What Typically Happens
Once a government is formed and policy direction becomes clearer, the market responds. If the new administration pushes infrastructure development, land prices in targeted areas rise steadily. If projects are delayed or cancelled, the speculation-driven spike corrects itself.
Historically, Indian real estate has shown that post-election periods with stable governments tend to bring genuine price appreciation backed by actual development, not just promises.
So Should Murugan Buy Now or Wait?
The honest answer stop timing the election cycle and start evaluating the land itself. Location fundamentals, clear title, nearby development activity, and long-term connectivity matter far more than who wins the next election.
Land price increase during election time is real in some pockets. But it is driven by sentiment and speculation not by guaranteed value. Buy when the deal makes sense, not when the calendar says so.
