High transaction costs like GST and stamp duty are the major deterrents.

Kanika Gupta Shori, COO and Co-founder, Square Yards

What are the key continuing challenges which you foresee impacting the economy as a whole, and the real estate Sector post easing out of lockdown in stages?

Undoubtedly, pandemic had a severe impact on our economy, as a result India's April-June quarter GDP contracted by 23.9 per cent year-on-year (YoY). However, we can expect recovery earlier than what many experts predicted initially. In the recent Monthly Economic Review, Finance Ministry stated that, "a steady contraction of active Covid-19 cases and a low case fatality rate has instilled measured optimism in India that the worst is behind us." Further, the review also stated that Indian economy stands poised to recover at a fast pace and reach pre-Covid levels by the end of the year.

As far as the real estate sector is concerned, sales are almost back to pre-Covid level and in fact enquiries are substantially higher than pre-Covid period. Analysing the latest sales data shows that in Q3 - 2020, there has been over a 100% jump in average housing unit sales across major cities over Q2 - 2020.

So, no doubt there is a pent up demand in the sector and considering that interest rates on home loans are at all-time low, stamp duty is reduced and developers are offering innovative schemes, more and more prospective home buyers will take a buy decision soon.

Are there any green shoots visible after the announcement of the stimulus packages / and RBI's rate cuts on the realty sector?

Yes, as I mentioned, there is a significant jump in enquiries and sales, not only from domestic, but also from NRI home buyers. Home buyers are getting attracted to residential projects by reputed developers and these large and organised developers are effectively minting sales through fully digital channels.

What further reforms should be undertaken by the states / central government?

I always believed that high transaction costs like GST and stamp duty are the major deterrents, when it come to buying a property. So, I think other state governments should also reduce stamp duty rates, similar to Maharashtra.

What further measures, steps should the government undertake towards the migrant labourers and employment creation in the realty sector?

Government should look at the funding issues that developers and the sector is facing. Rationalizing GST rate on under-construction properties and stamp duty rates, can do wonders.

Brief us on your outlook for the next couple of years in the realty segment?

Some of the macroeconomic indicators are already showing marginal improvement. Besides that considering the recovery in demand and quality supply infusion across segments by developers, India's real estate sector is poised for strong growth in next couple of years.

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