The Relief Package Brings Back Positivity in the Real Estate Industry

by GoelGanga Developments Real estate

Today, the active cases of Coronavirus disease in India have crossed 3 Lacs. India is also witnessing a rapid recovery rate, but still it has to overcome the adversities and win the battle against the pandemic. With an increase in cases, every sector has been baffled by all possible means. To support the ailing economy by weeks-long lockdown and curb the COVID-19 pandemic, a relief package by the Finance Minister had been introduced in May. With these announcements, the Indian real estate has found reasons to be pleased and find its way out. The package will benefit divisions like MSMEs, banks, real estate, agriculture, migrants, etc. The package was launched to encourage the financial growth of the country and help it to overcome the hardships.

The real estate sector was expecting this package as big relief from the government, stated Goel Ganga Developments Owners recently. Some major issues faced by the real estate industries were credit squeeze and uncertain demands. The property market which was limping back seems hard to recover from the crisis of COVID- 19. Undoubtedly, this stimulus package came as a doorway of hope to the developers.

Deadline extensions

The government has announced a feasible extension of six months in all residential and commercial projects to meet the local challenges. The market analysts affirms that this proposal will de-stress the builders significantly. Since the construction of ongoing projects has halted after the departure of migrant workers and their unavailability across the country.

Liquidity factors

This package promises to infuse liquidity in the financing companies. Apart from RBI, a scheme to borrow Rs. 30,000 Crores by the NBFC’s and HFCs are created and it will be guaranteed by the government. Additionally, to fill the credit squeeze, Rs. 45,000 Crores is introduced under a partial guarantee scheme. The developers let out a sigh of relief, to ease liquidity in the neck of the time. This brand-new package is approximately equal to 10% of GDP. It also includes Rs 1.7 Lakh Crore which was announced in March 2020 simultaneously with other measures launched by the Reserve Bank of India.

According to Anuj Goel Ganga, these steps will ensure immediate liquidity that is required to kick the growth engines post lockdown. The reduction of TDS by 25% will help new buyers to purchase homes during these tough times. In the coming days, we expect the government to waive off stamp duty and leverage on GST to increase sales. This shall bring out lesser non- occupancy on the built property. Goel Ganga Developments Owners have faith that these decisions will benefit in the long term.

Time for Self-Reliance

Self-reliance or being AATMANIRBHAR is the new motto, envisioned by Mr. Modi. It is expected to bring major changes and results in every industry. The experts believe that it will go a long way, with no doubts. This opportunity will build new employment and for the public and gradually bring affirmative results in the coming future.

It is a fact that builders are worried regarding the present demand as people abstain to shell out their savings. All the way, this package and tax relief is expected to help everyone and bring some stability in the market. During these tough times, Goel Ganga Developments Pune assures to provide homes at the earliest, in the set budgets for everyone.