AgenciesMUMBAI: The Minister of Housing & Urban Affairs Hardeep Singh Puri has coaxed real estate developers to offload their unsold inventories in the market rather than holding onto the same for a specific price environment.
“Offload, offload, offload; get rid of your inventories. The country needs that from you and you will also benefit from that activity. Let’s now look at a new beginning,” Puri told realty developers at NARDECO-APREA virtual conference. “With the economy bearing the brunt of the adverse impact of Covid-19, the real estate sector plays a crucial role to revive the economy and kickstart a virtuous cycle of economic growth.”
The Minister highlighted the property sales registration in Maharashtra for September has surpassed the registrations done in pre-Covid era and recorded the highest registrations of this calendar year. According to him, one of the major factors contributing towards this growth is reduction in stamp duty by the state government and various other steps of the Central government.
For the last few months, realty developers have been offering discounts and various incentives including financial subvention schemes on under-construction and ready properties to attract homebuyers and prop up their sales.
He also praised the NAREDCO Maharashtra’s developer members for absorbing the homebuyers’ stamp duty burden, while suggesting the same initiative to developers from other parts of country to prompt sales activity.
The Minister also added that he has written to all the state governments and Union Territories to take similar steps in line with the government of Maharashtra’s move to announce reduction of stamp duty to encourage the sales and to accelerate the economic activities.
Earlier this year, Union Ministers Piyush Goyal and Nitin Gadkari and finance industry experts like Deepak Parekh and Uday Kotak have also suggested realty developers to liquidate their unsold inventory.
The sector’s strong forward and backward linkages, particularly with the core sectors of the economy, such as steel, cement and other building materials. With its impact on 270 different industries, an upswing in the real estate sector will have strong implications for other sectors as well, especially the financial sector, Puri added.
Responding to developers’ feedback on delayed environmental clearances, Puri assured realty developers that he is willing to speak to Minister of Environment, Forest & Climate Change Prakash Javdekar.
“I am willing to write a letter to him, but let me know what is the nature of these clearances are, which are getting delayed…If you are compliant, I don't see why we should be in a position of having to face delays, when all the other compliances are in place,” Puri said.
According to him, COVID-19 pandemic has come up as a blip in the economic growth story, but eventually the real estate sector will emerge stronger. The pandemic will undoubtedly change the way one lives and works and emerging trends will become part of our ‘New Normal’.
“Offload, offload, offload; get rid of your inventories. The country needs that from you and you will also benefit from that activity. Let’s now look at a new beginning,” Puri told realty developers at NARDECO-APREA virtual conference. “With the economy bearing the brunt of the adverse impact of Covid-19, the real estate sector plays a crucial role to revive the economy and kickstart a virtuous cycle of economic growth.”
The Minister highlighted the property sales registration in Maharashtra for September has surpassed the registrations done in pre-Covid era and recorded the highest registrations of this calendar year. According to him, one of the major factors contributing towards this growth is reduction in stamp duty by the state government and various other steps of the Central government.
For the last few months, realty developers have been offering discounts and various incentives including financial subvention schemes on under-construction and ready properties to attract homebuyers and prop up their sales.
He also praised the NAREDCO Maharashtra’s developer members for absorbing the homebuyers’ stamp duty burden, while suggesting the same initiative to developers from other parts of country to prompt sales activity.
The Minister also added that he has written to all the state governments and Union Territories to take similar steps in line with the government of Maharashtra’s move to announce reduction of stamp duty to encourage the sales and to accelerate the economic activities.
Earlier this year, Union Ministers Piyush Goyal and Nitin Gadkari and finance industry experts like Deepak Parekh and Uday Kotak have also suggested realty developers to liquidate their unsold inventory.
The sector’s strong forward and backward linkages, particularly with the core sectors of the economy, such as steel, cement and other building materials. With its impact on 270 different industries, an upswing in the real estate sector will have strong implications for other sectors as well, especially the financial sector, Puri added.
Responding to developers’ feedback on delayed environmental clearances, Puri assured realty developers that he is willing to speak to Minister of Environment, Forest & Climate Change Prakash Javdekar.
“I am willing to write a letter to him, but let me know what is the nature of these clearances are, which are getting delayed…If you are compliant, I don't see why we should be in a position of having to face delays, when all the other compliances are in place,” Puri said.
According to him, COVID-19 pandemic has come up as a blip in the economic growth story, but eventually the real estate sector will emerge stronger. The pandemic will undoubtedly change the way one lives and works and emerging trends will become part of our ‘New Normal’.
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