New launches in for deferrals with COVID-19 limitations hindering construction and work on hold at sites

Kapil Malhotra

Several Indian States Governments have come up with newer restrictions for limiting the swift spread of the Omicron COVID-19 variant and this may lead to developers deferring new real estate project launches as per reports. For example, realty projects planned for launch in Mumbai around Makar Sankranti on 14th January may be delayed till 2nd April (Gudi Padwa) or 3rd May (Akshaya Tritiya). Construction has come to a grinding halt owing to various restrictions, the construction ban in the NCR for limiting pollution and rain in several parts of India as per many experts.

Buyers have also put off their walk-in site visits in major Indian cities due to coronavirus related limitations. The Uttar Pradesh Government, part of whose jurisdiction covers the NCR, has already limited employee attendance in Government and private offices to a maximum of 50% along with a night curfew. Haryana, which has many parts under the NCR, has also banned any large gatherings while keeping sports complexes and movie theatres closed. The CAQM (Commission of Air Quality Management), as per the Supreme Court’s guidelines, banned demolition and construction throughout Delhi-NCR on 16th November, 2021, for reducing air pollution. It also banned entry of trucks carrying non-essentials into the city although this was lifted on the 20th of December, 2021.

Experts feel that new launches will god own throughout Delhi-NCR. The Capital has its own weekend curfew while mandating work from home protocols for private offices as well. Yet, some experts highlight strong home buying demand in spite of restrictions. Principal Partner and Director of Sales, Square Yards, India’s foremost real estate platform, Kapil Malhotra, stated that housing demand has outstripped pre-coronavirus levels in some pockets owing to record-low rates on home loans, reduction in stamp duty and stable prices of property.

He added that good projects still possess high chances of selling out in spite of the third wave of the COVID-19 pandemic while adding that not many developers can hold onto land for a long time due to running costs. Hence, he feels that they will have to launch their new housing projects for monetization of the same. Site visits have plunged rapidly in Mumbai and Bangalore, among other major cities, while there is moderate to minimal impact overall on the property market.

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Published Date: Jan 11, 2022

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