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Quote by Rohit Gera Managing Director, Gera Developments on Outlook 2021

Quote by Rohit Gera Managing Director, Gera Developments on Outlook 2021

"2020 dealt yet another blow to the struggling real estate sector.  However, the indomitable human spirit was also visible through the lock down and...
With the World Health Organisation (WHO) declaring it a global health emergency and pandemic on March 11, 2020, due to COVID-19, the sentiments of businesses worldwide were severely impacted and were mostly negative in their outlooks. The outbreak created a great deal of uncertainty regarding trade and imports across the globe. The real estate sector, too, touched the lowest of lows during the almost three-month-long nationwide lockdown. While construction activities came to a sudden halt, reverse migration of labourers made the resumption of work difficult. Developers faced severe liquidity constraints and homebuyers lost a significant appetite to buy a property. Home sales and new property launches suffered a great deal as the nation struggled to battle the pandemic. Government and apex bodies came up with plenty of fiscal measures to deal with the major challenge of liquidity funding. The various measures introduced by the RBI and Union finance minister injected liquidity into the market so that the economy can recuperate quickly. The Central Government and the various State governments would do well to stop further proliferation of the virus and handhold the Indian real estate sector in the times of crisis. Six months into the situation, real estate demand has piqued with genuine homebuyers willing to take advantage of value propositions coupled with payment plans given by a vast set of developers. Development work across construction sites, too, has begun, although at a slower pace. As there is a major shift towards digitization due to the pandemic; people who favour offline property search now prefer online real estate portals to search their dream homes. Online home sales have begun to gain traction and leading developers with a good track record will be the main beneficiaries of this change. There has also been a huge demand for virtual tours wherein home-buyers are opting the same either to shortlist or to finalise their homes. In a significant trend seen during Covid-19, unlike before many respondents seeking property from investment perspective prefer ready-to-move-in (RTMI) homes. The consumer preference has predominantly shifted towards affordable and mid-segment properties. There are several initiatives taken up to support the real estate sector by the Maharashtra Government which has already spurred demand and revived confidence in the industry. Also, the unanimous decision by NAREDCO Maharashtra to waive stamp duty completely on the sales of residential properties has added to the home buying euphoria and supported the Government’s efforts to push housing demand in the state. It has not only pushed stagnant housing sales northwards but also made home buying cheaper and supported the State exchequer mop up a whooping stamp duty in revenues in just two months. Such initiatives should be emulated by other state governments as it will be a good booster for realty at Pan India level. Knight Frank India, leading international property consultancy estimates that home sales volume in Mumbai recorded at 9,301 units in November 2020 registering a whopping 67% year-on-year (YoY) rise over the same month last year boosted by stamp duty cut and festive period of Diwali. This strong growth of 17% month-on-month (MoM) in November 2020 comes after a robust 42% MoM growth during October 2020 and massive 112% MoM growth during September 2020, when sales of residential property started to show an upward trend after months of COVID-19 induced slowdown. Mumbai has witnessed a cumulative residential sale of 22,827 units after the stamp duty cut during September-November 2020. The monthly run rate in this period after the stamp duty cut is approximately 135% or 1.35 times the monthly average of 2019. With steady decline in the number of COVID-19 infections across the country and the vaccine around the corner, we expect better days for the economy going forward along with the GDP growth to turn positive in Q4 this financial year The Repo rate cuts, lower home loan interest rates and newly announced affordable rental housing policy open new avenues for the segment. The industry players anticipate the upcoming Budget for Financial Year (FY) 2020-21 to relax income tax norms, offer single-window clearance and GST reforms. The helpful measures like easing out of the liquidity issues that are being faced by the sector can aid the buyers to make investments, thus lending a positive push to the vision of 'Housing-

Yearly Round-up & Outlook for 2021 for the real estate sector by Ashok Mohanani,...

With the World Health Organisation (WHO) declaring it a global health emergency and pandemic on March 11, 2020, due to COVID-19, the sentiments of...
Yearly Round-up & Outlook for 2021 on the real estate sector by Kaushal Agarwal - Chairman, The Guardians Real Estate Advisory

Yearly Round-up & Outlook for 2021 on the real estate sector by Kaushal Agarwal...

While the world will remember the year of 2020 for the coronavirus and the subsequent lockdowns, the real estate sector of India and especially...
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Kaushal Agarwal – Chairman, The Guardians Real Estate Advisory on RBI policy announcement

"Owing to inflation concerns and steep reductions previously, the RBI was expected to keep rates unchanged. With commercial banks being asked to consolidate profits...
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Real estate developers on RBI Policy Review

Nagaraju Routhu, CEO, Hero Realty: RBI’s Monetary Policy announcement today is along expected lines. Given the fact that certain steps have already been taken in...
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Accommodative stance necessary to revive growth: Niranjan Hiranandani

"The monetary policy committee’s decision to keep key rates unchanged was on expected lines and may continue in the near future to support growth...
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Ram Naik – Executive Director, The Guardians Real Estate Advisory on Finance Minister’s announcement

“The FM’s announcement of an increase in difference between the so called circle rates and the agreement value, will lead to further rationalisation of...
Project fraternity shares view post Finance Minister’s announcement

Project fraternity shares view post Finance Minister’s announcement

Bhushan Nemlekar - Director, Sumit Woods "The Central Government has taken a step in the right direction. Looking at the current market condition, many developers...
Project fraternity shares view post RBI Policy announcement

Project fraternity shares view post RBI Policy announcement

Tanuj Shori - Chief Executive officer, Square Yards The linking of risk weightage only to Loan to Value (LTV) ratio vis-a-vis the earlier practice of...
Project fraternity shares view post RBI Policy announcement

Project fraternity shares view post RBI Policy announcement

Mohit Goel, CEO, Omaxe With sharp reduction in policy rates announced since March, a pause was always on the cards. But we expected the apex...