News: NAREDCO says worst is over for property sector, nanciers caution against price hike-01-03-2021
Synopsis
Industry experts, at a virtual session, agreed that the sector is slowly coming back on the track with nancial institutions now making long term funding available to the real estate sector.
With the real estate sector witnessing increased transactions and positive consumers’ demand after the lockdown, realty developers’ body the National Real Estate Development Council (NAREDCO) believes the worst is over for the sector. However, the body is seeking more policies and nancial support to bring the sector back on the growth path. Industry experts, at a virtual session, agreed that the sector is slowly coming back on the track with nancial institutions now making long term funding available to the real estate sector. “There is a positive sentiment visible across the economy, and as GDP growth happens through the V-shaped recovery, the aspect of recovery in commercial real estate, especially oice spaces, remains a concern in light of ‘work from home’ as also ‘work from remote location’,” said Niranjan Hiranandani, National President, NAREDCO. “Similarly, while the SWAMIH Fund has done
well, there are many stalled and delayed projects, recovery of which will need ramping up of the quantum of the fund as also allowing nancial institutions to participate in the process.” Financiers and mortgage lenders cautioned developers that any price hike by them may dent the reviving housing demand.
“There is a huge opportunity we all are sitting at. Interest rates are the lowest and developers have been sensible about the pricing and government initiatives such as the reduction of stamp duty has played an important role. People are venturing out and buying homes. Developers should continue giving their best to ensure the rates don’t go up. Government benets are not going to be there forever,” said Renu Sud Karnad, Managing Director, HDFC. According to Saloni Narayan, Deputy Managing Director, Retail Business, State Bank of India (SBI), outlook of the economy is upbeat and consumer sentiments are improving while there was a slowdown in the discretionary spending, the housing spending did not witness as discretionary spending. During the discussion, experts laid emphasis upon segments and subsegments in Indian real estate that have shown early recovery and have the highest potential to grow in the future. With improving customer sentiment post various policy announcements by the governments and micro markets that have seen traction, the NAREDCO member developers promised to continue their eorts and keep the momentum like last year.
