Slump-hit builders were pinning their hopes on government support to shed the increasing unsold stock even as an ongoing crisis in the country’s non-banking finance sector, a key source for housing sector funding, made borrowing extremely difficult, jeopardising their plans to deliver projects within the promised timeline. Developers were sitting on an unsold stock worth approximately Rs 6 lakh crores, as of March 2020, show PropTiger.com.
Near-halt on construction activity amid a lockdown in India to contain the virus and delay in supply of manufacturing material and equipment from China, will further push delivery timelines of ongoing projects, consequently increasing the overall cost for developers. Through furious efforts, China, the country where the virus originated, has been able to bring the pandemic to heel, with workers joining offices.
However, as the situation in India worsens, builders here will be forced to postpone orders. Several measures announced by the government in its Coronavirus-specific stimulus package and the EMI holiday for developers during the crucial period are some steps that might offer some relief to the builder community. “The pandemic menace has hit at a particularly sensitive time.
Across realty companies, this is the time when statutory payouts and streamlining of balance sheets happens. In this challenging time, we have asked the government for some economic interventions like rescheduling loan repayments, a one-time rollover for debt restructuring and deep interest rate cut,” Hiranandani added. Disclaimer : This article is not credited or edited by Rentroomi Publisher : Housing.com