Mumbai, 16th December 2020 (GNI): “The real estate sector in India has been facing headwinds from past few years. The situation became tougher owing to the COVID-19 situation across the globe. The uncertainty has brought the world to a standstill and India is no exception to it. The global economic slowdown had a negative impact on real estate demand in the country this year. Construction activities were brought to a sudden halt in the first quarter (Apr – Jun) due to the COVID 19 induced lockdown and the uncertainty over jobs and livelihoods robbed the market of its potential buyer-base leading to near zero demand. Post lockdown sales trajectory gives some hope, but is yet to touch pre-covid levels in most cities across the country.
The Government of India has announced relief measures to aid businesses sail through these challenging times be it the loan moratorium, lowering of repo rate resulting in lower interest rates for home loans, approval of projects of Rs 12,079 crores under SWAMIH fund and so on. The one time loan recast has kept almost 95% of the developers out of its ambit due to Standard Account criteria while ECLGS Scheme and increase of safe harbor limit from 10% to 20% in the circle rate and selling price are welcome steps. There are indicators that point towards recovery in the sector, at a less than desired pace. However, the steps announced by the GOI and RBI mitigate the COVID-19 impact to a certain extent and do not address the prolonged problems of the realty sector which has been ailing due to the challenges created by an array of factors over the past few years. The Government approach to the issues faced by RE sector needs to be balanced both on demand and supply fronts”, stated in the press release.ends
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