Even as the Centre has assured to assist the severely-impacted real estate sector, industry experts feel there is a need for agility and instant action by all stakeholders.
The ongoing lockdown, necessitated to curb COVID-19 pandemic, has adversely impacted the real estate sector which has been sluggish since the past over three years.
"We are in difficult times and what is most important at this moment is agility and the speed to act, which all of us need to keep in mind. The government should respond quickly by taking strong measures and providing economic incentives, because it's not just measures but its speed which should be instant," Tata Realty and Infrastructure CEO Sanjay Dutt said during a webinar meeting organised by real estate developers' body Naredco.
Echoing views, Piramal Capital managing director Khushru Jijina said that there was a need for developers to focus on completing their projects even before thinking about the prices at what they want to sell.
"The situation that we are in, is far different from what was during the global crisis of 2008. This time it's not financial crisis but the problem has arisen due to the virus and government intervention will be very critical for us.
The industry has made various representations to the government seeking one-time restructuring package along with reduction in GST and other incentives to push real estate demand.
Meanwhile, the Reserve Bank of India has announced a three-month suspension of EMI payments for all borrowers.
Speaking during the webinar Naredco President Niranjan Hiranandani said that reduction in prices cannot raise demand but there was a need to ensure completion of ongoing projects.
"We cannot reduce price and extend demand. The government's decision to commence construction activities in certain areas is in the right direction but then the work needs to be started," he said.
HDFC chairman Deepak Parekh on April 15 had said that real estate prices will correct upto 20 per cent in wake of the COVID-19 pandemic.
The industry experts also noted that the residential sector has been impacted the most while the impact on commercial sector was more of short term.
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