Real estate developers on Tuesday lauded the Uttar Pradesh government's decision to consider stuck projects for 'zero period' relief, saying the move will be helpful for both builders and homebuyers.
The state cabinet on Tuesday approved a slew of recommendations of the Amitabh Kant Committee report on real estate projects, waiving interest from April 1, 2020, to March 31, 2022, from stuck projects considering the situation arising out of the COVID-19 pandemic. Industry body National Real Estate Development Council's (NAREDCO) national president G Hari Babu said the UP government's "commendable decision" is a significant boon for 2.40 lakh NCR home buyers.
"This move not only facilitates home registrations for flat owners but also sends a positive signal to the real estate sector. This decision will create a conducive environment for the advancement of the NCR real estate landscape. We are hopeful of many such real estate sector-friendly decisions by the government," he said. Relators body Confederation of Real Estate Developers' Associations of India NCR's President and Gaurs Group CMD Manoj Gaur lauded the government for its "thoughtful consideration" of the developers' request.
"With the exemption of interest during the 'zero period', many flat owners can now proceed with the registration of their homes without the added financial burden," he said. Gaur said beyond its immediate implications, the decision serves as a beacon of positivity for the real estate sector at large. "Recognizing and addressing the concerns of the developer community, the government has not only alleviated financial pressures but has also conveyed a strong and optimistic message to the entire real estate industry," he said.
He said the industry believes that this considerate move will pave the way for increased confidence among homebuyers, stimulate investment, and contribute significantly to the growth of the real estate sector. Amit Modi, Director, County Group, said with this move, all stakeholders, including financial institutions, authorities, state exchequers, and developers, stand to gain.
"Homebuyers benefit from home deliveries, including getting their homes registered. Authorities receive dues, and state exchequers benefit from increased revenues from the registration of properties," he said. "The move will also help many developers turn net positive," he added.
Himanshu Garg, Director, RG Group said, "With this change, developers will be able to bring in co-developers for their individual projects that have stalled, resulting in timely deliveries." Additionally, it will make it possible for financial institutions to finance these projects, assisting developers in managing financial constraints that result in project completion delays and, to some extent, avoiding legal issues, Garg said.
Yash Miglani, Managing Director, Migsun Group, said this step by the government is completely "in the interest of millions of people". Home buyers had been facing problems due to the lack of registration for a long time, he noted. "This decision will not only be beneficial for the buyers but will also make real estate a more reliable sector. We anticipate an increase in the investments in the real estate sector, which will contribute to a rapid increase in the GDP of the country," he added.
Salil Kumar, Director Sales and Marketing CRC Group, said since the decision paves the path for the registry of homes, it will also increase state exchequer's revenue. "As real estate developers, we welcome this move as it enables further growth of NCR's realty sector," Kumar added.
