Real Estate Sector Staring at Payment Defaults amid COVID-19 Lockdown. The Covid19 pandemic, subsequent lockdown and its impact on the economy have resulted in losses of over Rs 1 lakh crore so far for Indian real estate sector and it continues to rise with each passing day, said Niranjan Hiranandani, National President of realty developers’ body National Real Estate Developers Council (NAREDCO).
“If you can overcome the crisis today, you may be able to stand up tomorrow,” he said while suggesting that an economic stimulus package for all industries across the economy should be at least 10% of the country’s GDP.
Post the pandemic, he estimated delays in ongoing projects to range from 3 months to a year and a half, depending upon the stage of the project and location, among other factors. The revival story post the pandemic would largely be driven by end-users and the affordable housing segment should be first of the starter’s block. He expects property prices to correct around 10% as there would be some desperate to sell, but this would again depend upon location, type, and a segment of individual projects.
NAREDCO has requested to suspend all NCLT activities for the next 6 months considering the downfall of the economy of India and global investors waiting to take over listed companies at thruway prices.
From: https://economictimes.indiatimes.com/