Due to the epidemic, 4% of people avoided the decision to buy a new home

In the second phase of the Corona transition, once again the lockdown was implemented and various industries came to a standstill and economic activities came to a standstill. This adversity has also had a major impact on the real estate industry. If the government does not announce immediate relief for the industry, a serious situation will arise.

Confederation of Real Estate Developers Assoc. According to a survey conducted by the government, more than 5 per cent of developers believe that projects will definitely be delayed if immediate relief measures are not taken by the government and the RBI for the sector. The delay is due to various reasons, such as 5 per cent developers are facing labor shortage at the site, 4 per cent developers are working with less than half the workforce and more than 3 per cent developers are facing delays in getting the project approved.

Additional factors such as the recent rise in prices of building materials like steel, cement, etc. have increased construction costs by more than 10 per cent for developers by more than 5 per cent. The financial crisis and cash crunch have exacerbated the problem, with 5 per cent of developers struggling to repay existing loans, while 5 per cent of developers are facing disruptions in their earlier collection. Due to the second wave of Covid, 4% of consumers have postponed their purchase decision.

The government has agreed to suspend liquidity infusion by the association, one-time restructuring of loan, extension of 3 months on completion date by RERA, reduction or waiver of stamp duty, extension in moratorium on principal and interest for 6 months and submission of SMA classification for one more year.