New Delhi: The real estate sector, which has seen a gradual recovery after the total halt of the first wave of Covid-19 and the lockdowns that resulted from it last year, is once again experiencing a slowdown in the current Covid crisis across the country . Also Read – Cardiac Arrest Journalist and Producer BA Raju, Celebrities Including Prabhas, SS Rajamouli Mourn Loss
Sales and construction in the sector have all but come to a halt. Developers and pundits have sought relief in these trying times, including additional cash support. Read also – Pigs, garbage and engorgement: Bihar hospital fights against chances of saving COVID patients | Watch the video
Aditya Kushwaha, CEO and Director of Axis Ecorp, said: “Just as the recovery was in sight, the second wave has derailed the growth momentum in the real estate industry.” Also Read – PCB to Host Remaining PSL 2021 Matches in Early June, Gets Clearance Needed
He suggested that proactive measures that could cushion the impact on the sector, such as loan restructuring, the interest moratorium and additional liquidity support, should be considered by the RBI.
According to Kushwaha, real estate companies face challenges in timely delivery of their current projects and, in addition, new launches have been put on hold.
“To allow the industry to recover more quickly from the impact of this wave, the RBI will have to step in and come up with relief measures,” he said.
Vinit Dungarwal, director of the AMs Project Consultants, observed that the second wave of the pandemic had a widespread impact on all businesses.
Describing the announcements made by RBI Governor Shaktikanta Das on Covid relief measures for small businesses, individuals and MSMEs is a welcome move, he said: âThe resurgence of the pandemic and the resulting concerns as to its impact on the economy and businesses require a resilient approach and we hope that appropriate measures will be taken to meet the needs of the real estate sector. “
However, Shveta Jain, Managing Director of Residential Services at Savills India, believed it was too early to assess the outcome of the ongoing second wave of the pandemic.
âThe residential market has recovered after the opening of the first lockout last year. We expect the same momentum to continue once the current situation stabilizes. “
For now, given the severity of the ongoing health crisis and the lack of mobility due to the lockdown, businesses are at a standstill and transactions are expected to remain weak for at least the next few months, Jain said. “As the vaccination campaign catches up, we expect end-user demand to return similar to what we saw after the first wave of the pandemic.”
She said measures such as reducing stamp duties and circle rates should again be introduced by the government to stimulate housing demand during the pandemic.