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How will Coronavirus COVID-19 outbreak effect or impact Real Estate in India

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How will Coronavirus COVID-19 outbreak effect or impact Real Estate in India

Last updated: 2 weeks ago
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  • Re : How will Coronavirus COVID-19 outbreak effect or impact Real Estate in India

    According to a research by India Ratings, the cost of 75 per cent of the inventory in the MMR region is above Rs 50 lakh and cutting down the stamp duty alone may not help draw in buyers and boost real estate.
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    • ZorawarFromGurgaon
      ZorawarFromGurgaon commented
      Editing a comment
      Thumps up for this...
      Last edited September 1 2020, 01:38 PM.

  • Re : How will Coronavirus COVID-19 outbreak effect or impact Real Estate in India

    Compared to MMR, Pune real estate has an almost equal proportion of inventory ranging below and above Rs 50 lakhs and hence stamp duty reduction may encourage sales to some extent.
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    • Re : How will Coronavirus COVID-19 outbreak effect or impact Real Estate in India

      Real estate may see high revenue disruption: CRISIL

      Real estate sector could be cramped by collapsing discretionary demand or high leverage. Consumers are expected to defer purchases in the real estate sector which may lead to high revenue disruption.
      NEW DELHI: Demand and realisations are expected to be low in real estate sector in 2020, according to a recent report by Crisil Ratings, an S&P Global company. The company expects real estate to be one of the sectors to take longest time to recover.

      In a recent report, CRISIL slashed its base-case GDP growth forecast for fiscal 2021 to 3.5%. "Intensifying Covid-19 pandemic and a looming global recession have cast an unprecedented cloud over the credit quality outlook of India Inc, which has already been impacted by a slowing economy," it said.

      India’s gross domestic product (GDP) growth for fiscal 2021 was pegged at 6% by the Reserve Bank of India
      (RBI) on February 6, and by CRISIL at 5.2%. CRISIL has since revised its reading 170 basis points lower to
      3.5%, while the RBI in its monetary policy meeting in March, decided not to provide an outlook on GDP
      growth.

      The company conducted a survey on 35 sectors and foresee India Inc’s credit quality deteriorating in the near term. These 35 sectors account for over 3,000 firms and over 71% of the debt (excluding financial sector) in CRISIL’s rated portfolio.

      Of this, real estate falls in the 4% category where the debt is in the least-resilience category. Others in the category include airlines, gems & jewellery and auto dealers due to the discretionary nature of goods and services, and weak balance sheets.

      These sectors could be cramped by collapsing discretionary demand or high leverage. Consumers are expected to defer purchases in the real estate sector which may lead to high revenue disruption.

      Cement industry may display high resilience due to multiple reasons such as presence of sufficient cash reserves to reach production readiness, continued/uninterrupted production being part of chain of essential goods and services, high prospects of immediate demand restoration as soon as the pandemic restrictions are lifted and government or regulatory support.

      Supportive measures from the government and the RBI have eased pressure on cash flow across various sectors for the near term. However, duration, spread and intensity of the pandemic will determine the extent of disruption in business performance the report said.



















      https://realty.economictimes.indiati...risil/74992969


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      • Re : How will Coronavirus COVID-19 outbreak effect or impact Real Estate in India

        Experts assert that the residential real estate’s volume and price growth are closely integrated with the GDP growth rate, and consumers need sustained incomes more than anything to create long-term assets like real estate.
        Last edited September 6 2020, 10:05 AM.
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        • Re : How will Coronavirus COVID-19 outbreak effect or impact Real Estate in India

          The state of Karnataka is now considering reduction in stamp duty just like Maharashtra did in a bid to boost genuine property sales.
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          • Re : How will Coronavirus COVID-19 outbreak effect or impact Real Estate in India

            Originally posted by Malvish View Post
            The state of Karnataka is now considering reduction in stamp duty just like Maharashtra did in a bid to boost genuine property sales.
            I hope Haryana and Delhi govt. gets this Innovative Idea too.

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            • Re : How will Coronavirus COVID-19 outbreak effect or impact Real Estate in India

              Originally posted by ZorawarFromGurgaon View Post
              I hope Haryana and Delhi govt. gets this Innovative Idea too.
              Many State Govts. are looking at it seriously.
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              • Re : How will Coronavirus COVID-19 outbreak effect or impact Real Estate in India

                Originally posted by ZorawarFromGurgaon View Post
                I hope Haryana and Delhi govt. gets this Innovative Idea too.
                All state governments should have done that by now to at least draw in genuine buyers, even though it would take a little more than that, to attract buyers in the present scenario.
                Last edited September 7 2020, 02:07 PM.
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                • Re : How will Coronavirus COVID-19 outbreak effect or impact Real Estate in India

                  RERA Karnataka has issued a circular stating that they would penalise builders who delay the submission of the quarterly and annual audits of their projects. They have stated that all builders were required to update the quarterly and annual audit within 15 days from the due date or else bear the fine.
                  Last edited September 9 2020, 10:37 AM.
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                  • Re : How will Coronavirus COVID-19 outbreak effect or impact Real Estate in India

                    Madhya Pradesh reduces cess on stamp duty to 1% for property registration

                    In a bid to boost growth of the real estate sector, the state government has now decided to reduce the cess on stamp duty for registration of a propertys sale and purchase from the current three per cent to one per cent in the urban areas, the chief minister said.
                    • PTI
                    • Updated: September 07, 2020, 18:49 IST
                    https://www.indianrealestateforum.co...73#post2684473
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