To invest now or not in RealEstate is the question! Its in times like these that prudence and wise decisions made with good judicious advice will pay off very well in the future. These are troubled times for every industry and RealEstate is no exception. The entire construction industry has come to a standstill during the lockdown and many a financial hit has been taken by the investors big and small. So whether you should invest or not?? We hope the following analysis from us will help you make up your mind and put you at ease. Read on!
Before the lockdown Realty sector has been reeling under the pressure caused by mega regulatory changes caused by the Real Estate Regulatory Authority (RERA), the goods and services tax (GST), demonetization and benami property law. Added to that the slowdown in demand due to lockdown has curtailed housing sales, project launches and price growth significantly.
Government both at the Center and the state have recognized these symptoms and are coming up with various schemes and plans to prop up the industry. ICRA said in a recent note that the three-month moratorium announced by the RBI on March 28 on loans will provide some comfort to builders. “The injected liquidity of Rs 3.74 lakh crore (by the RBI) along with the three-month moratorium on all term loans by financial institutions will alleviate short-term liquidity concerns and help developers as well as homebuyers . It is a big relief for developers and buyers to help them mitigate the challenges faced by them currently,” says Ramesh Nair, CEO & Country Head of JLL India.
In the stimulus package 2.0 which our honorable FM Ms Nirmala Sitharaman announced, in a major relief to contractors, all central agencies to provide an extension of up to 6 months, without cost to contractor, to obligations like completion of work covering construction and goods and services contracts,” Finance Minister said, adding that the agencies can also release partial bank guarantees. This along with the aid of collateral free loans to MSMEs is definitely going to go a long way in generating and protecting employment.
While new project launches are being staggered by the developers, the available ready-to-move-in inventory continues to see interest during the ongoing lockdown period. Affordable properties continue to remain an attractive option to investors during these times. As you very well know RRHousing is the leader of Affordable housing. To help you with your buying decision we can attend to your on site visits or send you the required information online. Rest assured that we will work with you to our utmost ability to ensure that you get the best service possible safely adhering to all norms of social distancing and other norms laid down by the authorities.
As in good times the due diligence of a construction project should be undertaken by the buyers. Its more pertinent now in these difficult times to ensure that you have the financial reserves to fall back on in difficult times. Whatever questions you might have we are willing to answer, inform and educate you! Please make the call now!