Know How Real Estate industry will tackle after the Lockdown 4.0 stage
With the upcoming lockdown 4.0 know what relief did real estate sector got in their area with COVID 19 package. Most of the real estate industry experts welcomed this move.
In the first tranche, Minister of Finance of India – Nirmala Sitharaman said that they will advise the State Governments and Union Territories to extend the registration and completion time of all real estate RERA projects by six months on or after March 25. Thus, it will help developers with some relief in the real estate project completion. Real Estate Regulatory Authority (RERA) can also allow with discretion of another three months relief with post local conditions.
On Wednesday, Nirmala Sitharaman announced that all RERA real estate projects which were supposed to be completed on or after March 25, will get extension by six months. With the adverse impact of COVID 19 pandemic situation real estate projects stands in the risk of defaulting on the RERA timeline & guidelines. This step has been taken into consideration due to COVID 19 to help real estate sector with pending constructions work that needs to be boosted.
This step would help most of the ongoing projects in the cities going into default with stoppage of the total work by the lockdown. Nirmala Sitharaman also added that, it would also help to protect the interest of homebuyers as they will get their property but delayed by six months. Thus, homebuyers will be able to get the delivery done of their booked houses with new timelines in the upcoming days.
The Housing Ministry and Urban Affairs will issue an advisory to all the real estate state under RERA & Union Territory to treat this COVID 19 event as ”Force Majeure” (Act of God) to extend the timeline.
In the second tranche, real estate sector also got a second relief for it. Government of India announced the extension of One Year CLSS (Credit Link Subsidy Schemes) up to March 2021 to boost demand in affordable housing.
With the past CLSS scheme implementation in the year 2017, it has benefitted over 3 lakh families and with the extension of this it will help more home buyers to avail the CLSS scheme. The increasing demand for affordable housing will push demand in raw materials like steel, cement, transport, necessary equipment and other construction parts.
Now the question here arises with migration of labours and breakdown of construction materials, how will the real estate sector work and how much time will it take to restart?
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