News: Commerce Minister Piyush Goyal asks developers to sell properties at reduced rates-03-06-2020
Updated On: Jun 03, 2020
Commerce Minister Piyush Goyal asks developers to sell properties at reduced rates
“If any of you here feels that government will be able to finance in such a way that you can hold longer and wait for the market to improve, market is not improving in a hurry. Things are seriously stressed and your best bet is to sell,” Goyal said in a video conference organized by developers’ body NAREDCO.
MUMBAI: The Union Minister of Commerce & Industry Piyush Goyal has advised real estate developers to reduce prices and sell their inventories and not to wait for the market to improve. The government is trying to offer some concession in ready reckoner rates, but even if that does not happen, he suggested that developers will have to sell. “If any of you here feels that government will be able to finance in such a way that you can hold longer and wait for the market to improve, market is not improving in a hurry. Things are seriously stressed and your best bet is to sell,” Goyal said in a video conference organized by developers’ body NAREDCO. He also reminded developers that those who have sold the inventory, leveraged less or got rid of their bank loans have survived the downturn, while those who are saddled with large loans and kept holding onto their price have suffered. According to Goyal, developers will have to make a choice whether to be stuck with inventory, default with the banks and then the material goes away. Or they can chose to get rid of whatever is bought at high prices and look at it as a bad decision or an unfortunate situation and move forward. Among various measures, the government has so far allowed 6-month extension in completion timelines for realty projects and has extended the credit linked subsidy scheme (CLSS) for Middle Income Group (MIG) by one more year until March 2021. It has also advised states, union territories to extend time-bound realty permissions validity by 9 months. Apart from reducing policy rates, the Reserve Bank of India (RBI) has so far allowed a moratorium of total 6 months on payment of all loan and interest installments.
