Builders hails extension of project completion timelines; now seek fiscal sops to revive demand

Real estate developers on Wednesday said the government's decision to extend the timeline of completion of projects by six months will provide much needed relief to the industry but sought more measures to improve liquidity, reduce input cost and boost housing demand.

"The declaration of Covid 19 as Force Majure, extension of timelines for completion of project under the RERA, are crucial announcements for the developer community," CREDAI Chairman Jaxay Shah and President Satish Magar said in a joint statement.

They are hopeful that the finance minister will soon announce other necessary measures by infusion of liquidity, de-cartelization of cement prices, restoration of supply chain to ease construction on the project sites and help uplift the demand by giving more sops to homebuyers by increasing the tax deduction limits for interest on home loans.

These measures, if taken, would help the sector regain momentum which remains the second largest employer, said the top two executives of the country's apex realtors body.

Naredco President Niranjan Hiranandani said the " announcements today missed fiscal stimulus for real estate."
Anarock Chairman Anuj Puri said: "This is a big move that will destress developers significantly, since construction activity had been halted all across the country. Homebuyers' wait for their homes will get extended by this move, but this was in any case inevitable."
" Some construction work has now resumed, but faced with migration of labourers, it may take some time for it to gather full steam. In this context, a six month extension in completion deadline is a welcome move."