Housing projects set to delay further due to COVID-19
The Coronavirus outbreak and thereafter the nationwide lockdown have not only brought site visits and property transactions to a screeching halt, but  also stalled the ongoing construction of the  housing projects all across the country— which may result in further delay of delivery. It is also expected that the property prices will also take a nosedive.
According to a 99acres Report, the outburst of novel Coronavirus has put a temporary break on the construction work of over 15 lakh housing units across the top eight cities alone which may result in further delay of project deliveries. Subsequently, the sale conversions are expected to remain bleak until the next quarter. Already in the first two weeks of March, property enquiries dipped by over 20 per cent in metro cities across north India and 7-8 per cent in southern metros.
The shutdown of construction activities has posed a larger threat as timely completion of residential projects remains doubtful now. Amid the government’s thrust on affordable housing slow-paced offtake of homes under Pradhan Mantri Awas Yojana (PMAY) and compromised amenities in such projects may make matters even worse in the times to come.
Housing demand, enquiries and sales volume, which posted growth in the first two months of Jan-Mar 2020, slowed down in March. The industry now heavily relies on government’s intervention to support its functioning. The builders have raised demand for measures including tax exemptions, deferment of tax payments, besides extension in the yearly financial closing date, and relaxation policies which may reenergise growth.
The real estate sector in India has battled with several past challenges including demonetisation, implementation of RERA, Goods and Services Tax (GST), and more lately the liquidity crisis, but now the industry is looking to sincere support from the government.
With an unsold inventory of around 6.24 lakh residential units and 15 lakh under-construction homes in top eight metros, the real estate companies have demanded cuts in borrowing costs for homebuyers, deferred payments of various levies, besides support to NBFCs to improve their liquidity and penalty exemptions for the delay in project completions for developers.
