COVID-19 Economic Package Boosts South Delhi Real Estate Market
Govt has come up with an Rs. 20 Lakh crore economic package to help withstand the fallout of COVID-19 and lockdown with a vision to make India ‘self-reliant’. The package is designed to revive the Indian economy by addressing issues faced by 4L’s – Labour, Land, Liquidity, and Laws. Labor and Land represent Indian Real Estate Industry to a large extent. There was a growing worry among South Delhi Builders & developers of completion deadlines as most of the workers have migrated to their hometowns and are not expected to return soon.
Relief measures aim at stimulating Real Estate Sector boosting South Delhi Real Estate Market are:
- Real Estate got a major push with Govt declaring COVID-19 as ‘force majeure’. Thus, extending the timeline for project completion and registrations by 6 months. This move will relieve builders & developers in South Delhi since construction activity has been halted for the last 2 months amidst lockdown. As a result, the homebuyer’s possession date will also get postponed.
- Announcement of Rs. 30,000 cr special liquidity scheme for NBFCs/ HFCs and MFIs will ease the liquidity crunch of stressed players. This will indirectly benefit the real estate as NBFCs and HFCs are major lenders (>50% of total lending) to the real estate industry. HDFC Ltd, the leader in the South Delhi Home / Mortgage loan market stands to benefit the most as they are the most innovative and customer-friendly home loan NBFC, similar to our Builder Selection Martix their selection of preferred builders is amongst the active developer list it includes the Uppal Group, Sanskar Homes, LFW – Lalaji Flats Wale, Windchimes, Munjal Homes, Aarcon, Metro, and many more.
- To provide support to the struggling MSME sector, the Govt announced collateral-free automatic loans of Rs 3 lakh crore and has changed the definition of MSMEs to include more units. This will help prevent job losses and will indirectly benefit the affordable housing segment.
- TDS on brokerage/commissions has been reduced from 5% to 3.75% and will benefit real estate consultants/ agents
The above measures are expected to give South Delhi Real Estate Market a good push to survive the lockdown fallouts. However, Real Estate Industry needs more such measures to stimulate home buyers like Reduction in stamp duty, GST reductions as covered in our previous blog on ‘Recommendations to Govt to revive Real Estate Industry post lockdown’.
Indian Real Estate sector will come out of this Stronger.
As Charlie Chaplin quoted “Nothing is permanent in this wicked world- not our troubles!”
Southdelhiprime.com a Digital Venture of SanD Advisory Pvt Ltd. is a boutique real estate advisory & transaction company, having advised the who’s who of South Delhi on their real estate assets. We have special expertise in high value transactions & dispositions in South & Central Delhi. With over 500+ clients, SanD has done transactions worth millions. DoctorProperty.in, our online expert will respond to some of the common questions we’re receiving regarding buying a house during this pandemic.
