23rd October 2020: With the Indian economy having taken off in the ‘Unlock’ phases, real estate, too, is on a path to recovery. Developers opine that real estate is poised to bounce back with a renewed vigour by the fourth quarter of 2020. According to them, the series of measures announced by Hon’ble Finance Minister Nirmala Sitharaman laid the foundation towards recovery. The prevailing liquidity crisis prompted RBI to slash the repo rate and reverse repo rate along with a 3-month moratorium on all loans. The extension of the deadline for under-construction projects was also a relief for the sector.
Mr. Rahul Singla, Director Mapsko Group, said: “The COVID-19 pandemic has had a pervasive impact on all sectors. During the lockdown, real estate was plagued by challenges such as a dent in sales, halt in construction activities and falling inquiries. The restarting of economic activity and Unlock 5.0 has played an instrumental role in boosting demand and reviving consumer sentiment in real estate. The initiatives by the government have also laid the path to recovery. Likewise, the number of inquiries and visits of consumers on our website has now gone up.”
Developers are optimistic about the upcoming festive season to boost sales as this time is considered auspicious for buying a property. They are, however, unanimous in their view that resilience will be the key to survival for real estate firms in the post-COVID-19 era. The lockdown witnessed real estate developers leveraging technology extensively to enhance the customer experience. Out-of-the-box thinking and disruptive initiatives by the real estate developers will be the key to navigate through the COVID-19 crisis. Moreover, amid apprehensions of health, hygiene and wellness, buyers are more likely to trust organized developers with sound credentials as they are well-equipped to not only address these concerns but also offer a superior customer experience.
“The COVID-19 crisis has highlighted that resilience and innovation will be the key to survival for real estate firms. The overall health, hygiene and wellness concerns will redefine the focus towards the organized segment led by developers with sound credentials and good track record. The consolidation of labour laws and bringing unorganized workers into social security ambit will go a long way in creating a conducive business environment. Bolstered by initiatives by the government and developers, we foresee the sector to bounce back by Q4 2020,” Rahul Singla added.
The policy measures will also play a pivotal role in accelerating the pace of recovery. Recently, the government announced the three labour codes that have subsumed archaic labour laws. This legislation will enhance ease of doing business and position India as a favourable investment destination. The granting of industry status and instituting a single-window clearance system will be decisive steps in improving the business ecosystem and attracting investments into the sector.