Reactions of real estate developers & experts on the Finance Minister’s announcements for Real Estate sector today

New Delhi, May 14, 2020:

Mr. Mani Rangarajan, Group COO, Housing.com, Makaan.com and Proptiger.com

The Government has taken the right step by extending completion deadline of all RERA registered on-going projects by six months. This will provide relief to developers, but at the same time, buyers will have to wait for possession a little longer which will in-turn impact their finances and banks. Also, the liquidity infusion to the tune of Rs 30,000 crore via special liquidity scheme and Rs 45,000 crore through partial credit guarantee scheme into NBFCs including Housing Finance scheme will help the sector in these trying times

Mohit Goel, CEO, Omaxe Ltd.

We welcome the Government’s decision to extend the timeline for project completion by six months. But more important is the decision to infuse additional liquidity in NBFCs and HFCs as that lack of funding by financial institution is a bigger issue confronting the developers. This will help both NBFCs and real estate sector.

Navin M Raheja, CMD, Raheja Developers

Providing extension of 6 months for completion of projects was indeed warranted particularly for NCR based developers considering that construction activities was also stalled in Delhi NCR in the months of October & November due to severe air pollution. In fact, for NCR based developers, the extension should be ideally by 9 months.

Manoj Gaur, MD, Gaurs Group and Chairman Affordable Housing Committee CREDAI National

Ever since the imposition of lockdown economic activities undertook a hit and construction activities also got stalled across the country. Some construction work has now resumed, but faced with migration of labourers, it may take some time for it to gather full steam. In this context, six month extension in completion deadline is a welcome move.

Pradeep Aggarwal, Founder & Chairman –Signature Global Group & Chairman – ASSOCHAM National Council on Real Estate, Housing and Urban Development

“The relief provided to the common man under EPF will help the affordable segment a great deal. The buyers of affordable fall in this category and they will be elated to get extra money at their disposal. Covid-19 situation has made everyone realise the importance of making safe investments and having a roof on one’s head. With extra disposable income, these beneficiaries of the announcement made by the FM will go for buying real estate assets.

Other announcements regarding extending the timelines under RERA authority will help a great deal in providing relief as buyers will understand the reason behind delivery date extension”.

Deepak Kapoor, Director, Gulshan

Developers are dedicated towards fulfilling the promises made to the buyers. The realtor community has been focussing on delivery over last one year but this global pandemic was about to derail it. The Government has intervened at the right time and gave developers space to breath as they were also facing the problems which are faced by other industries or sectors. 

Amit Modi, President Elect CREDAI Western UP

Even though the extention the registration and completion date suo-moto by 6 months for all registered projects expiring on or after 25th March, 2020 without individual will help the developers from going into default for sometime, but we still feel that specific steps required for liquidity  generation in the Real Estate Sector is the real need of the hour.

There is nearly Rs 7.8 Lakh Crore with the banks at the present moment, that has been parked with the RBI at moment and it’s high time that, that amount is moved from the RBI and Banks to percolate liquidity in the economy.

Uddhav Poddar, MD, Bhumika Group

“We welcome the announcements made by Hon’ble PM and FM, and hope for the speedy implementation of all of these as the economy is already in the ICU state. Real estate is one of the largest employment generators, employing a large part of migrant labour population of the country welcomes the reliefs pertaining to extension of project completion deadlines, but the main concern today is of liquidity and for that there needs to be a direct push to banks and NBFC’s to lend to this sector. Overall very positive but quick implementation would be the key”.

Rajat Goel, JMD, MRG World

The recent announcements made by FM Nirmala Sitharaman under the Self- Reliant India Movement have eased the developments for the real estate sector in coming months. It has treated COVID-19 as an event of ‘Force Majeure’ under RERA, along with extension of registration and completion date suo-moto by 6 months for all registered projects expiring on or after 25th March, 2020 without any individual applications from the developers. The liberty of extending it by another 3 months is also given to regulatory authorities. We welcome the government’s measure for understanding our position in this difficult time and helping us maintain positive relations with our customers. Post- COVID scenario has been eased out for us, and we would be looking forward to complete our projects under this new timeline, with due support from RERA and Urban Ministry authorities.

Prateek Mittal, Executive Director, Sushma Group

We welcome the measures undertaken by the government to support real estate sector amidst the ongoing crisis. With the infusion of Rs 30,000 crore to the NBFCs, liquidity crunch in the housing finance will be eased off to an extent. Apart from that, now the RERA authorities will be directed towards treating COVID-19 as an event of ‘Force Majeure’. This announcement has brought some relief to the developers from additional stress due to pandemic covid19. 

Yash Miglani, MD, Migsun Group

The sector has been requesting government for measures that can help maintain the good image of real estate that has emerged especially after this government came with RERA. The latest ‘Act of God’ would have wiped out all the positive efforts made by the developers towards streamlining. In this backdrop, the announcements made by the FM will help the sector save its hard-earned image.

Harvinder Singh Sikka, MD, Sikka Group

COVID-19 has been a clarion call globally. We are very thankful for Govt. of India’s proactive support to the real estate industry. Declaration of COVID-19 as an ‘act of God’ under regulatory authorities, pushing the dates of registration and completion suo-moto by another 6 months for the projects expiring on and after 25th March,2020 will prevent the developers from entering into defaulting. Even post-lockdown, the procurement of raw materials and presence of labour in full force will be certain setbacks leading to delay in work at construction sites. An extended timeline will provide an opportunity to developers and contractors for planning out the way forward upon understanding these situations closely.

Vijay Verma, CEO, Sunworld Group

Real estate sector has always been in a hustle of delivering projects within registered timelines, procuring  timely approvals from authorities and departments. The lockdown bringing every sector to standstill added to the miseries of property market. We are grateful for the government’s intervention with reduced repo rates, resuming of construction activities, the recent announcements of extended timelines for registered projects and an additional extension of 3 months for projects by RERA. They will be distressing the developers and providing assurance to the homebuyers for timely deliveries. A foresighted approach for issuing fresh ‘Project Registration Certificates’ automatically with revised timelines, reflects hope for a promising future

Corporate Comm India (CCI Newswire)