June 12, 2020

A prognosis for developers to stay afloat amidst the slowdown.

Rakesh Reddy, Director, Aparna Constructions, For 99acres

The economic slowdown has brought challenges for multiple sectors, including the Realty Sector too. The builders are looking for new ways to overcome this crisis and continue to grow further. In a recent conversation with 99Acres, our Director, Mr. Rakesh Reddy shares his thoughts on the same. Here are a few things you must know:

Reduction in Repo Rates

It’s viable for high-end developers to curtail property prices. However, the mid-sized developers may be unable to take such a step without any consequences. Hence, interest rates, and mainly the repo rate, must be brought down for banks to start lending again.

Reforming Foreign Investment Policy

The demand for this sector has suffered due to the slowdown. But, if the Government allows the Real Estate Investment Trusts (REITs) and Foreign Institutions to invest in Occupation Certificate holding apartments, the demand for the sector is bound to increase.

Temporary Restructuring of Loans

Real Estate Developers feel that reducing prices will have long-term consequences, which makes it hard to safeguard the realty stakeholders. Hence, by temporarily restructuring loans for a year seems like one of the best options.

To find out more details on the same, read the full article by 99Acres below.