New Delhi: The ongoing coronavirus outbreak and its impact on the economy have pushed sentiment in real estate to its all-time low. Both residential and commercial real estate sectors are expected to be hit in terms of launches, sales, and prices. The sector has not only taken a hit due to the lockdown to curb the spread of virus but has been ailing for quite some time now.
Vikas Oberoi of Oberoi Realty speaking to ET Now answers questions like How can the real estate sector crawl back to life? Has the coronavirus crisis put the sector on a ventilator? Does this sector need a huge relief package?
Talking about the role of the realty sector, Oberoi said: “It’s a globally known fact that spending on real estate has a multiplier effect. If you spend on real estate it goes to cement, steel, labour, contractor, multiple people. The government itself earns 28-30 per cent of our revenue growth through direct and indirect taxes.”
On whether the sector needs a relief package, he said that demand needs to be created and not asking for money in our hands.
He further said that this is an opportunity where we can take advantage of the current situation and let people have money in their hands so that they and buy houses.
Talking about inventories and demand, he said that “less than a thousand ready apartments with OCs ready to be sold in Mumbai.”
He added that with labour going away, the sector is expected to see a supply constraint and believing that huge inventories will drag down prices is a myth.
Source – timesnownews.com
