Although MSMEs, NBFCs and HFCs were
the main focus of the Finance Minister's address, the real estate sector also
received a major boost from the announcements made by Nirmala Sitharaman on
Wednesday. Giving a major relief to real estate developers, FM extended the
timeline for completion and registration of the project by 6 months.
The
move will help the developers immensely as construction activity is grinding
across the country. The wait for house buyers gets a bit long, but it was
inevitable.
Including
COVID-19 in the definition of “Force Measure” or “Act of God”, and the State /
UT Regulatory Authority to revise the lawsuit on the moto and the date of
registration and completion of projects by 6 months, in advance there is a
boost for the sick. It is slated to combat disruption caused by epidemics.
"This will not only provide more time for the project to be completed
without any obligation for delay in completion of the project, but also prevent
them from facing legal matters due to delays limited to this 6-month extension
window. Will give,” a tax expert said.
While
COVID-19 dissemination has been challenging for many sectors, including real
estate, with many research reports in this area it appears encouraging that
real estate is still considered the best investment option. This will be
further strengthened by the Finance Ministry with various liquidity measures
that will help reduce the rigidity currently being seen in the Indian real
estate market.
In
addition, the announcement of Rs 30,000crore special liquidity plan for NBFCs /
HFCs and MFIs will ease the liquidity misery of stressed stakeholders. This
would greatly benefit the real estate sector, given that NBFCs and HFCs are its
main lenders.