Lockdown Extension Impact

"The extension of the nationwide lockdown was bound to be extended, as we are still a few days away from flattening the curve. The government's decision is calibrated and prudent. Having said that, we would welcome a gradual opening of economic activity including resumption of construction activity at project sites. The beginning of construction activity has multiple advantages as it brings wages to labourers, cash flow to developers, much needed credit growth for banks and resumption of economic activity in the country. As many home buyers avail loans to fund their real estate purchases, the resumption of construction activity will allow developers to raise demands to their existing customers who in turn will ask banks for disbursements, leading to uptake in credit. The government needs to now look at targeted relief measures for the real estate sector to ensure the industry continues to remain a leading employment generator and the effect of the lockdown do not further hamper the prospects of this category."

 Kaushal Agarwal, Chairman, Director, The Guardians Real Estate Advisory

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