NAREDCO says worst is over for real estate sector but more policies and financial support required to bring the sector back on growth path

– Unprecedented recovery is seen in the last four months

-Interest rates are the lowest in the 15 years for consumers

-Positive outlook in terms of future of India and its GDP growth

-NPAs in home loan segment are the lowest Consumers are venturing out and buying homes

With the real estate sector witnessing an increased transactions and positive consumers’ demand after the lockdown, the National Real Estate Development Council (NAREDCO) has today organised a – Virtual Session on ‘Reality of Realty Investments’ where the industry stalwarts agreed that the sector is slowly coming back on the track with financial institutions are now making long term funding available to the real estate sector. The credit for this success goes to the entire developers’ community and all stakeholders who have adopted responsible approach during the COVID-19 pandemic to make the sector overcome the most difficult time. 
Developers are now bullish for the growth ahead and optimistic for an unprecedented recovery. However, the worst of pandemic is still not over and real estate developers are still working together to overcome the challenges. All the stakeholders who were present during the webinar looked positive and said that due to all-round efforts the sector will fully recover from the pandemic in the time to come.  
NAREDCO extended its warm regards and thanked the central government for various initiatives such as extending the benefits of the CLSS scheme for one more year along with other policy pushes and also appreciated the state government initiatives to reduce the stamp duty. The national developers’ body also appreciated the financial institutions for making the cheapest home loans available to consumers.  
Dr. Niranjan Hiranandani, National President, NAREDCO said, “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 office spaces, remains a concern in light of ‘work from home’ as also ‘work from remote location’. 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 financial institutions to participate in the process.” 
He added that as the economic situation improves and the authorities seem to have done well post the Covid-19 pandemic, most efforts seem directed towards the home buyer. “Home loan interest rates are at historic lows; some states have reduced stamp duty rates. What is also needed is support for project finance, and I hope positive steps happen – and soon. As the vaccination drive shifts into high gear with the public-private partnership, one expects normalcy to return by June-July this year.” 
During the virtual webinar event, the panelists laid emphasis upon segments and sub-segments 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 efforts and keep the momentum like the last year. 
Mr. Rajan Bandelkar, Vice President (West), NAREDCO & Chairman, Raunak Group said, “We have never spent 60 days at home before and people now understand the importance of a home.  I would like to compliment developers’ community for reducing the rates. Credit should go to all developers. In Maharashtra, 90 per cent developers took the hit and gave zero stamp duty to customers. I also want to thank financial institutions for reducing the interest rates and request them to pass on the same benefits to developers as well so that they can build more houses.”
 While speaking during the virtual event, Ms. Renu Sud Karnad, Managing Director, HDFC Ltd said, “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 benefits are not going to be there forever. NAREDCO kept pushing the government wherever it was necessary and managed to get benefits for the real estate sector. If they could also pitch in for digital signature and can make this process easier through ministries then it will be really helpful for the sector.”
Ms. Saloni Narayan, Deputy Managing Director, Retail Business, State Bank of India (SBI), adds, “Retail estate sector is the most critical sector. If the economy has to grow this retail estate sector must grow. It comprises of four sub-sectors housing, retail, hospitality and commercial. The growth of this sector is well-complimented by the growth of corporate environment and the demand for office space and urban and semi-urban accommodation. The construction industry ranks third among the 14 major sectors in terms of direct, indirect and induced effects in all sectors of the economy. The Annual construction by the real estate stands at 12.53 lakh crore which is 6 .1 per cent of GDP of which developers housing contributes 42 per cent, self-construction constitute 53  per cent and rest of course is 5 per cent. The sector contributes 2.2 crore for the employment of this country, it is five per cent of total workforce that we have.”
Ms. Naryan further says, Outlook of economy is upbeat and we are poised to participate in this growth story. We will be happy to join builders, customers and all stakeholders for whatever is required from the bank. Consumer sentiments are improving while there was slowdown in the discretionary spending, the housing spending did not witness as discretionary spending.” Residential sector is doing extremely well. There was pent up demand as soon the lockdown was lifted but it has eventually converted into a real demand. Hardly there is any project which is not selling. NAREDCO is optimistic of this sustained growth for the sector.