New Delhi: Real estate developers said Wednesday the government’s decision to extend the timeline of completion of projects by six months will provide much needed relief to the industry. However it sought more measures to improve liquidity, reduce input cost and boost housing demand.
“The declaration of COVID-19 as force majure, extension of timelines for completion of project under the RERA, are crucial announcements for the developer community,” CREDAI chairman Jaxay Shah and president Satish Magar said in a joint statement.
Both Shah and Magar are hopeful that the finance minister will soon announce other necessary measures by infusion of liquidity, de-cartelisation of cement prices, restoration of supply chain to ease construction on the project sites and help uplift the demand by giving more sops to homebuyers by increasing the tax deduction limits for interest on home loans.
These measures, if taken, would help the sector regain momentum which remains the second largest employer, said the top two executives of the country’s apex realtors body.
Naredco president Niranjan Hiranandani said the ‘announcements today missed fiscal stimulus for real estate’.
On the extension of timeline to complete projects, he said: “This is indeed a move to combat COVID-19 disruption which practically brought construction work to a grinding halt with additional chaos of migrant labourer’s movement and raw material supply disruption. Relaxation in project timelines under RERA Act will bring in sigh of relief to the developers and safeguard the interest of homebuyers with the revised new timelines.”
Anarock chairman Anuj Puri said: “This (timeline extension) is a big move that will de-stress developers significantly, since construction activity had been halted all across the country. Homebuyers’ wait for their homes will get extended by this move, but this was in any case inevitable.”
Tata Realty and Infrastructure MD and CEO Sanjay Dutt said this (timeline extension) will certainly alleviate a great amount of stress on the developers and also help homebuyers get their dream homes in the stipulated amount of time.
“Without such a bold decision, it would be very difficult for the real estate sector to continue growing amid these adverse situations,” Dutt said. He however, demanded a temporary waiver of GST to boost demand.
PTI
