On Tuesday, Deepak Parekh, MD of HDFC said amid all the chaos due to the pandemic the real estate prices will correct by 20% . In an address to real estate developers at a webinar by Naredco "Prices of real estate have to come down, and will come down". "I believe Naredco's estimate i .. s around 10-15 per cent. One must be prepared for even 20 per cent," he added.
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"Real estate is an immensely important asset class, and the value of global real estate was more than the value of all the stocks and bonds combined," he said.
And so investors or salaried class whose cash flow situation has not be disrupted due to the current pandemic and lockdown
Earlier in the segment, there was a hit due to NPAs in construction finance, liquidity dampener, high leverage etc.
Parekh asks the players in the segment to not leverage further as in bad times this can further destroy companies. Also, developers should consider moratorium as a last order relief.