The Indian real estate sector too is reeling under the deadly impact of the coronavirus pandemic like every other segment in the economy. But like it is with every crisis, this pandemic too may throw up opportunities for buyers as several cash-starved developers with unsold inventory may be forced to sell at discounted prices.
As per the report- large NBFCs expect further 20-25% cuts in the real estate prices and a 25-30% dip in volumes for the financial year 2021 along with fiscal incentives like stamp duty waivers. This shall aid demand recovery. The market may consolidate in the hands of select large organised developers with strong balance sheet and access to bank funding. Some developers may decide to offer well-designed compact units to fit the buyers’ pocket and may also offer freebies such as GST and stamp duty waivers, additional gadgets in the house such as dishwashers thrown in. There may not be enough headroom to rationalise prices as prices have remained stable for almost five years now
Mr. Pradeep Aggarwal, Founder & Chairman –Signature Global Group & Chairman – ASSOCHAM National Council on Real Estate, Housing and Urban Development said, “The biggest challenge in the market today is the revival of demand where real estate developers would have to think innovatively to generate cash-flows. The market has been in slow mode for the last five years due to several reasons. It is still trying to come to terms with disruptions like GST implementation and the NBFC funding crisis.