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08 May, 2020
Like the other industries and sectors, the realty sector is also expected to undergo major changes by the time the lockdown is over. It is being projected that there would be a high demand for affordable and mid-segment housing projects. A major reason behind this is that the lockdown period is witnessing a large number of job cuts and a slowdown in job creation. The overall economy is taking a hit, which implies that the purchasing power of the potential investors would be lower. At a time where the real estate sector is already struggling to create a growing inventory of unsold properties, maximization of sales is absolutely necessary.
In order to adapt to the situation, some of the leading developers have decided to focus on completing the projects which fall under the affordable segment & mid-segment first. The sales would be a big boost for these developers, many of whom were already facing a shortage of crisis due to the liquidity crisis. Some developers are trying to maintain cashflows by turning the processes online. However, a major problem is that the registration of properties can’t be done online yet. Unless and until it is possible, the builders won’t be able to generate proper inflows of cash.
Right now, the real estate sector is suffering greatly due to the lockdown. Apart from construction activities being stopped, they are also unable to procure raw materials due to lack of transportation. However, with the government announcing the resumption of construction activities and the transportation of all goods, this is expected to change. The projects which are nearing completion or fall under the affordable category are likely to be finished first as they can be liquidated quickly.
Just before the lockdown started, the realty sector was starting to recover from a slowdown that was affecting it for a few years. The government had announced a number of measures to help the developers complete their stalled projects. At a time like this, the pandemic and the ensuing lockdown once again threw the industry back into a crisis. However, a number of developers look forward to their upcoming projects to help them revive. Kolte Patil, one of the leading developers in Pune, has entered into agreement deal with a UK-based builder name Planet Smart City to launch a new project. Kolte Patil is probably the first real estate company to team up with a global developer during the lockdown and the project is expected to be launched around Diwali.
Uttar Pradesh RERA: UPRERAAGT10868
Maharashtra RERA: A51900000246
Goa RERA: AGGO07180190
Haryana RERA: HRERA(REG.) 59 OF 2017
Bihar RERA: BRERAA00637/26/A- 50/2018
Punjab RERA: PBRERA-CHD04-REA0102
Karnataka RERA: PRM/KA/RERA/1251/310/AG/171113/000598
Gujarat RERA: AG/GJ/AHMEDABAD/AHMEDABAD CITY/AUDA/AA00607/230723R1
New Delhi : DLRERA2019A0057