Apr 2020
18

Impact of Lockdown extension on Indian Real Estate Market

By Zricks.com
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Impact of Lockdown extension on Indian Real Estate Market Update

"We welcome this move by the government to allow limited construction activities in Rural and Municipal areas. This will help to solve the problems faced by the migrant blue collar workforce to a certain extent. We expect the government to ease the restrictions for Urban areas as well, in the coming days.

While being on an idle mode, the real estate sector is expecting few measures from the government to ease the liquidity crisis faced by the builders. It would be helpful if the central and state governments can reduce the GST and stamp duty, respectively at least for a year.  Another step which would be helpful to the sector is allowing external commercial borrowings (ECB), so that the companies can avail long term capital easily. I feel more foreign investments will come to India post this pandemic, especially from Europe, as the investors will be reluctant to put money in Chinese markets due to the prevailing negativity on that market." -

- M Murali, Chairman and Managing Director, Shriram Properties Ltd.

 

It is a welcome move by the government to allow construction activities in rural and municipal areas. One of the biggest issues faced by the government currently is the unemployment and unrest of migrant construction workers. This move will help them solve this issue to some extent. This will be a boost for the real estate and construction sector, as it is going through a turmoil due to the liquidity crisis and the lockdown. We feel that the extension of this relaxation to urban areas and a special financial package for the construction and real estate sector will help the sector to come back strongly and contribute towards the nation’s growth.

- Sriram Chitturi, founding president of rental housing association of India and the founder of Guesture coliving.

 

“The nationwide lockdown has undoubtedly mitigated the impact of the COVID-19 pandemic in India despite the economic costs incurred. The decision to extend the lockdown until May 3rd is a precautionary measure that is in the best interest of the country.

The government’s guidelines to permit the continuation of construction projects in urban areas where workers are available on site without being brought in from outside is a positive move for the real estate sector. Allowing building of roads, structures and industrial projects in rural areas, along with renewable energy projects, also highlights the magnitude of the construction sector in India. Being the second largest employer in India, it is imperative to safeguard the interests of the construction workforce, especially daily wage workers.

The real estate sector is taking all necessary precautions to prevent the spread of the Coronavirus among its workforce, as well as ease the impact of the lockdown. We are providing all necessary provisions, as well as health monitoring and medical care, at construction sites.”

- Mr Rakesh Reddy, Director, Aparna Constructions & Estates Private Limited.

 

“We truly appreciate the efforts of the government towards the containment of the pandemic. We are hopeful that the government will take into consideration the economic impact of the extended lockdown on industries, especially the building material industry. The Construction and Building Material industry contributes nearly 8% of the GDP and employs around 50 Million of workforce. The lockdown has impacted the industry significantly and has led to huge losses. Recovering from the shock will require extensive stimulus from the government and we are optimistic that the government will look into it.”

Aparna Enterprises – Mr Ashwin Reddy, MD, Aparna Enterprises.

 

“The COVID-19 pandemic is an unprecedented challenge on a global scale and ensuring public safety should be the topmost concern. The long-term impact will depend heavily on the intensity, speed and duration of the pandemic. The nationwide lockdown, along with other social distancing measures, have lessened the impact of the Coronavirus in India despite the economic costs incurred. The decision to extend the lockdown until May 3rd is a precautionary measure that is in the best interest of the country. Once the crisis is under control, we can focus on regaining our previous momentum.”

“Containing the spread of the Coronavirus will require active participation and mobilization of resources from all quarters. We must commit to fighting against the COVID-19 pandemic with resolve and restraint by strictly following all government advisories. The real estate sector is taking all necessary precautions to prevent the spread of the Coronavirus among residents and workforce, as well as ease the impact of the lockdown. We are providing all necessary provisions at projects including vegetables, hand-washing soaps/liquid, sufficient water and uninterrupted power. We are continuously educating residents, housekeeping and staff about safety measures including frequent hand washing, social distancing and practicing good hygiene. We provide a public announcement system that broadcasts Coronavirus precautions and reminders.”

“Along with enforcing safety measures and cleanliness in our labour colonies, we continuously monitor the health of all workers and arrange regular visits by a doctor. If any of our workers are found sick, including regular fever, we send them to the hospital by our ambulance. Digital transformation will be forced upon the real estate sector as day-to-day operations including sales, training and recruitment will have to take place remotely. Virtual workspaces for employees and virtual guided tours for potential buyers will be required. The government has acknowledged the severe implications of the COVID-19 pandemic on the citizens, industries and overall economy of India. This must be followed by prompt initiatives to protect all stakeholders. Being the second largest employer in India, it is imperative to safeguard the interests of the real estate workforce, especially daily wage workers.”

- Mr Rakesh Reddy, Director, Aparna Constructions.

Updated: 4/18/2020 4:07:49 PM
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