Indian real estate sector has these seven requests from the government to survive the lockdown

• The current scenario has dropped the consumer sentiment score to the lowest levels in the Q1 2020 because of the ongoing coronavirus outbreak, said Knight Frank-FICCI- NAREDCO Real Estate Sentiment Index survey.
  
• In addition to slowing sales, the lockdown also stalled construction, delayed projects, delayed repayments, and debt servicing.
  
• To ride through these tough times, the real estate sector wants aid from the government.
  
  

The lockdown and coronavirus outbreak has landed a death blow on the real estate sector which was already going through a slump for the last few years. As per a survey by Knight Frank and industry body FICCI, consumer sentiment is at its lowest.

In addition to slowing sales, the lockdown also stalled construction, delayed projects, delayed repayments, and debt servicing. Due to the many layoffs, salary cuts and lower job security, the demand for homes will also ebb to a new low.

According to the report, more than 60% of the surveyed stakeholders believe the pandemic will adversely impact residential new launches (65%), sales (65%) and prices (64%) in the next six months. Moreover, the sentiments of real estate stakeholders have dropped to an all time low in Q1 2020.

To ride through these tough times, the real estate sector wants aid from the government. “There will be a slowdown across the industry post-COVID-19 crisis. The industry is facing an acute working capital crisis which is essential to restart the business and keep it moving. We have all pinned our hopes on government intervention to salvage the loss created by the crisis with its big fat fiscal stimulus to get the growth trajectory back on track,” said Dr Niranjan Hiranandani, National President, NAREDCO and Founder & MD, Hiranandani Group.

And, this is what Knight Frank and FICCI want the government to do, to ensure they stay above waters:

1. One time restructuring of developer loans
   
2. Reserve Bank of India should give banks relaxation in bad-debt classification for six months.
   
3. Stressed asset fund (AFI) quantum to be enhanced
   
4. Reduce stamp duty for a temporary period
   
5. Waive off/reduce GST
   
6. Direct banks to lend more to NBFCs
   
7. Provide higher tax benefits under the Income Tax Act
   

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