New Delhi: Funding will revive the real estate industry post Covid 19 while the developers must gear up to bounce back with better technology solutions. This was concluded at a webinar organized by ASSOCHAM on ‘Covid 19 – Impact on Residential Properties and the way forward’.
While speaking at the webinar, Pradeep Aggarwal, Chairman, National Council on Real Estate and Housing, ASSOCHAM & Chairman, Signature Global India Pvt Ltd, said that at the real estate sector being the second largest employment generator in the country and contributing nearly 7 percent to the GDP is ironically the biggest sufferer in the times of pandemic. He added that the government needs to infuse liquidity in the sector, cut down GST across all boards, remove stamp duty and grant project extensions to developers. The developers need to make unique strategies, collaborate to reduce risks involved and focus on building more technology friendly infrastructure to work in future, he says.
The Webinar aimed at overcoming the present challenges of decline in demand and completing projects due to global pandemic. Niranjan Hiranandani, President Assocham suggested the need of stress funds and stimulus package as the issue of liquidity for real estate has been intensified now, where banks do not trust the economy and are not ready to lend any money and the NBFC’s in difficult conditions already. He also said that any further lockdown can lead us to starvation in the country. But only innovative ideas can help real estate rise.
The panelists agreed that post Covid 19 people would be relooking at design of their homes, demand for new requirements will rise and amenities in Housing complex will become major factor while making decisions. Buyers’ focus will be on budget and developers will have to adapt to this situation.
At the same time, the webinar reached on the conclusion that loan interest rates are at the lowest and this will be best time for end users to invest in property. On the other hand the discussion mentioned that NRI’s feel safety in India and their investment is predicted to rise. Therefore if the customers get supported with new schemes they will get attracted.
Anuj Puri, Chairman, ANAROCK Property Consultants, said that funding will give major money to real estate, Rs 10-12 thousand crore will not be enough. He also cited an example of China where government is helping developers and if in India too government participates pushing demand the sector will make a difference. He emphasized that we should not let crisis go away, we have to learn from it. According to him, Reasonableness and collaboration and emergence of new model of business along with new technology adaptation by developers in coming times will help real estate sail through.