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Q. How do you see the revival of the real estate sector post-pandemic?
A: Indian real estate sector, which was already struggling to re-emerge from the past turbulence of structural changes, policy reforms, and the liquidity crisis, witnessed another major fallout by the lockdown due to Covid 19. During the Pandemic, the main reasons behind this downtrend were insecurity towards jobs and reduction in salaries/ incomes and household savings. However, as life is bouncing back to normalcy post covid-19, we are now hopeful and can foresee a rise in the residential real estate. We have started seeing a visible hike in the economic sector and people have started to gain confidence in terms of their health, profession. Certainly, this increased faith amongst the masses will eventually lead to an increasing demand for residential real estate sector. Further, in India people find real estate is the safest investment that will support them in the future. The investment in residential real estate has already started to pick up. The pending decisions of the actual buyers / users, who wanted to buy a new house or upgrade the house is already happening in the market. The work from home scenario has also pushed the demand of residential real estate. We expect that affordable segment of residential real estate would be the major gainer towards the end of the pandemic. Looking at the growth trends the prices at which the present dealings are happening will not be the same after 3-6 months and a good leap in the residential real estate prices is expected in near future. The demand for commercial real estate mainly for the office space is expected to be slightly on lower side for a couple of years from now. Further, the government initiatives and lower interest rates for home loans may help for increase in sales and collections. RBI has also provided benefit of standard restructuring of loans for a period up to 2 years, which will provide developers an additional support and help them to complete the project fast (which were immobilised and delayed due to covid-19 lockdown) by using the collection in project development instead of paying the same to bank loan.
Q. How are the current demand dynamics - residential & commercial segments?
A: Residential segment is getting the momentum, however, commercial real estate may take some time for revival.
Q. What is your take on real estate grading for real estate developers like Wave Infratech? Has it been beneficial?
A: Grading of the real estate project by an independent government approved agency will improve and ensure transparency and create unbiased benchmarks for real estate projects. It would also help buyers in identifying quality projects within their metropolitan area. Wave Infratech is doing very large sized projects and is fully complied with RERA and all other statutory approvals/ requirements. Being the most reputed and largest developer, we hope the grading would further improve the trust in general public about our company and brand.
Q. Any expectations from Union Budget?
A: We expect for some tax relief in both direct and indirect taxation structure and rates. It would be worthy, if government increase in slabs of income tax that would help in increasing the household saving of an individual. This would ultimately help in increasing the real estate market and overall economy of the country. Further reduction in GST rate on various inputs required in the real estate sector and on home buyers would also help in improving the overall business scenario.
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