Correction of prices or relief from interest burden- What will initiate positive growth for real estate

The real estate sector in India has been witnessing weak sales for the last few years, resulting in a sharp drop in its significant contribution to the country’s Gross Domestic Product (GDP) and so now this pandemic has adversely impacted all the sectors of the economy including real estate. Adding on to the other thing which has sparked in the debate for real estate sector is that the developers are asked to reduce the prices and sell their inventory rather than wait for the market to bounce back by the Commerce Minister and also asked them to complete their projects before they sell it as no home buyer likes to buy an under construction projects.

On the other hand homebuyers are seeking and approaching a relief from the interest burden because in the backdrop of Covid-19, job losses and salary cuts have become common, homebuyers are already stressed financially and the government hasn’t provided any relief in their installments for the period of extensions granted to builders.

Mr. Pradeep Aggarwal, Chairman – ASSOCHAM National Council on Real Estate, Housing and Urban Development, and Founder and Chairman – Signature Global said, “We welcome all the reliefs which are initiated by the Finance Minister but there is a major problem of liquidity. To overcome all the crisis the government is expected to take some initiatives like recently declared Relaxation in project timelines under RERA Act which will certainly bring in relief to the developers and safeguard the interest of homebuyers too. So to support the real estate sector, government should take some substantial steps, where as the developers should also strategise selling of inventories in a new way to bounce back .

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