It is truly accepted that in this pandemic and lockdown, every sector including real estate has been going through very difficult and challenging phase. Realty developers, especially from the ailing realty sector, are not much encouraged with RBI’s slew of announcements. Realty sector is still waiting for one time debts restructuring to give breathe to the industries and help in its quick revival.
In such COVID-19 scenario, somewhere it will be extremely difficult for most of the developers to manage enough cash flow so as to continue construction activities, pay salaries as well as make vendor payment and at the same time keep servicing loan obligations. Thus, the need of the one-time loan restructuring by one year for all loans to real estate should be announced by the Government or RBI for ensuring developers to complete their projects on time so that the projects will not get delayed while delivering it to customers who are in the wait and watch mode.
Mr. Pradeep Aggarwal, Founder & Chairman – Signature Global Group & Chairman – ASSOCHAM National Council on Real Estate, Housing and Urban Development, says, “Real estate has been going through a challenging phase. Last financial year too, the situation was not good for the first 9 months and it got worse with the onslaught of a global pandemic. It has become difficult for many developers to manage cash flow to meet the requirements of construction, salaries, vendor payment, and then at the same time they have the loan obligations. The overall sentiment needs a boost and with one-time loan restructuring the confidence of the buyer will be back.