Real Estate Sector Cheers Recommendations In The Economic Package

The real estate sector has given a "thumbs-up" to the recommendations made by the Finance Minister for the sector in the recent economic package.

Pradeep Aggarwal, Founder & Chairman -Signature Global Group & Chairman - ASSOCHAM National Council on Real Estate, Housing and Urban Development said the relief provided to the common man under EPF will help the affordable segment a great deal.

"The buyers of affordable housing fall in this category and they will be elated to get extra money at their disposal. Covid-19 situation has made everyone realise the importance of making safe investments and having a roof on one's head. With extra disposable income, these beneficiaries of the announcement made by the FM will go for buying real estate assets.

Other announcements regarding extending the timelines under RERA authority will help a great deal in providing relief as buyers will understand the reason behind delivery date extension," he said.

According to Rajat Goel, Rajat Goel, JMD, MRG World, the recent announcements made by FM Nirmala Sitharaman under the Self- Reliant India Movement have eased the developments for the real estate sector in coming months.

"It has treated COVID-19 as an event of 'Force Majeure' under RERA, along with extension of registration and completion date suo-moto by 6 months for all registered projects expiring on or after 25th March, 2020 without any individual applications from the developers. The liberty of extending it by another 3 months is also given to regulatory authorities.

We welcome the government's measure for understanding our position in this difficult time and helping us maintain positive relations with our customers. Post- COVID scenario has been eased out for us, and we would be looking forward to complete our projects under this new timeline, with due support from RERA and Urban Ministry authorities," Goel stated.

Harvinder Singh Sikka, MD, Sikka Group, said that his group was thankful for Govt. of India's proactive support to the real estate industry.

"Declaration of COVID-19 as an 'act of God' under regulatory authorities, pushing the dates of registration and completion suo-moto by another 6 months for the projects expiring on and after 25th March,2020 will prevent the developers from entering into defaulting. Even post-lockdown, the procurement of raw materials and presence of labour in full force will be certain setbacks leading to delay in work at construction sites. An extended timeline will provide an opportunity to developers and contractors for planning out the way forward upon understanding these situations closely," he stated.