We expect the government to implement real estate stress fund, says Anuj Khetan, Director, Vijay Khetan Group
Covid 19 followed by lockdown has affected the world’s economy. How has your business been affected? How soon are you expecting a recovery in your business?
Covid-19 has impacted almost all the sectors and businesses of the economy. To mention about real estate specifically, the sector was already facing a major slowdown. The struggling real estate sector and the home buyers trapped in Covid-19 worries, have been relieved a bit with the measures being taken by the government across the world. The impact to be a temporary one as the situation is bound to recover sooner or later, once the same is absorbed. The government advisory to avoid social activities is certainly going to impact site visits and housing sales. However, Vijay Khetan Group has initiated a digital launch for their upcoming project, Codename Amazon in Andheri East, such digital launches will boost the developers’ confidence and help revive the real estate sector on the back of lower home loan rates and reduction in stamp duty.
With job losses, pay cuts and uncertainty looming, what would be your strategy to sell ready-to-move-in homes (completed projects)?
One of the primary advantages of ready to move in is that there is absence of waiting period for the homebuyers. Although the current situation due to pandemic has been a concern for the real estate sector, Vijay Khetan Group is taking efforts to ease the burden of its customers keeping in mind about their preference. The high-end residential complex, Krishna Residences located in Chakala, Andheri East offers an exciting deal where one can Buy Now with a bare minimum amount and can avail a defer payment for 3 months at the ready-to-move-in apartments that consists of branded fittings with superior finishing. The customer can experience streamline processes going all virtual and hassle-free online buying.
MHA has notified strict guidelines for restarting construction activities in Covid 19 free areas. How are you planning to complete your under-construction projects?
Now that government has allowed the functions of construction activities, it is definitely necessary to first focus on under construction projects. Proper health and hygiene will always remain a priority of labourers who are working at the sites. We will make sure the labourers at the construction sites are in pink of their health by conducting medical check-ups to ensure their proper health condition. Nonetheless, we have provided shelter to the migrant workers in labour camps and have provided resources for their daily food and necessities.
The Government through RBI has taken several measures to restart the revival process of the residential realty sector (especially affordable housing) however it is not showing positive results. Being an industry expert can you please suggest a workable revival package beneficial for both the developers as well as the buyers
For the speedy recovery of the sector which was already affected and due to the pandemic, there has been major slowdown, we expect the government to implement real estate stress fund. A policy to clear unsold inventory first and the most important better clarity on GST. It prevails great confusion among the taxpayers, they are clueless on how much they are obliged to pay on purchase of such homes. Whenever there is better clarity, buyers would certainly leave the fence and come back to the market.
With EMIs to pay and job losses and slashed salaries on card, what measures can the government take to handhold the salaried employees and self-employed in this time of distress?
With the economy majorly falling, the government needs to address the problem of liquidity crunch faced by everyone. The problem of shrinking economy can only be solved with lowering the EMIs interest rates, giving enough time to repay loans, more and more credit loans.
Being a leading player what is your message for the developers and buyers in this time of uncertainty?
Given that the real estate sector contributes significantly to India’s economic growth, it is important to broadly analyse on how the outbreak will influence this sector and it’s still premature to assess the current impact. Consumers will prefer seeing properties online through virtual tours and may not visit the site physically. The industry is taking all possible measures to mitigate the impact of COVID-19 on business by ensuring favourable pricing, moderating sales targets, etc. We hope for the continued support from the Government.