Realty developers will get three months extension to complete their projects. Developers have been seeking project completion time and exemption from penal charges to be extended by a year.
Under the Uttar Pradesh chapter of National Real Estate Development Council (NAREDCO-UP), realty developer Supertech and Antriksh group have offered 500-bed facility at two places in Noida. Noida has the maximum cases of COVID-19 in UP.
Even as the realty sector was already grappling with issues like poor demand and liquidity crisis resulting in delays in project completion, the coronavirus pandemic has made sure that the recovery in the sector isn't around the corner.
To invest Rs 300 cr in Wadhwa's Residential Project in Mumbai's Mulund suburb
Realty developer DLF has decided to give salaries to all workers and daily-wagers working directly with DLF, or indirectly through its active contractors. This is being done via a Direct Beneficiary Transfer system into the bank accounts of the workers to provide immediate funds to tide over this life-threatening crisis.
In a regulatory filing, Godrej Agrovet has informed that it has entered into a sale deed with Godrej Properties Ltd for the transfer by way of sale of a land parcel measuring 82 acres and 29 Guntas (approx) for a consideration of Rs 134.68 crore.
Realty developers and Industry experts lauded key measures announced by the central bank to support the economy. However, they also stated that banks need to transmit the same soon to help boosting liquidity and potential reduction in installments. The move is also expected to help realty developers avoid default in payments and any subsequent downgrades.
The company, while announcing its third-quarter results in the first week of February, said it would upgrade existing inventory of plots to independent floors, which have shown better traction in the market. The plan is to offer about 7 million square feet of finished homes on plots it has already developed across India.
The RBI cut repo rate to 4.4% and reduced the cash reserve ratio maintained by the bank by 100 basis points. The reverse repo rate was cut by 90 bps to 4%. NAREDCO President Niranjan Hiranandani said the RBI's move to pump fresh liquidity in the system will certainly help to mitigate the stressed cash flow and debt pressure in the economic system.
Construction work has come to a standstill as the lockdown kicked in, triggering concerns that the companies would see revenues being hurt and may even incur losses on some projects.
Earlier today, Finance minister Nirmala Sitharaman announced a number of measures to tackle the economic distress caused due to the Coronavirus outbreak and the subsequent lockdown announced to deal with the situation.
Lodha Group has over 200 retailers in its stores across various locations including Palava City, Thane, Pune and South Mumbai, who will benefit from this waiver.
Perhaps the only silver lining is that developers were able to shed nearly 3% of their unsold inventory in a year--at 6.44 lakh units now against 6.65 lakh units in March quarter 2019. However, the decline was mere 1% on a quarterly basis.
In order to overcome the impact of the pandemic, NAREDCO has said that it is essential that all the project loans disbursed by the banks, are allowed unconditional moratorium of 2 years during which period, no project account should be treated as NPA and no recovery proceedings should be initiated against any developer.
The global spread of COVID-19 since January 2020 is resulting in a slowdown in economic activity across the world. The impact on India has been limited so far, however, increasing spread of the pandemic in the country over the last few days and the preventive measures being taken by the central and various state governments have severely restricted business activities.
Typically, the March quarter accounts for 30%-35% of the annual revenue of construction companies; of which a month’s lockdown can erode 8%-10%. The ratings agency is of view that construction activities across construction hub cities such as Mumbai Region, Delhi, Pune, and Bangalore are likely to be stalled or progress at a significantly slower-than-anticipated pace.
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