REAL ESTATE sector seeks GOVERNMENT SUPPORT

The Gudi Padwa festival has always been a day of pent up housing sales happening; of higher than usual numbers of real estate transactions being done. This year, we have seen a situation where increased cost of construction materials over the past year and change in stamp duty rate structure in Maharashtra effective 1st April 2022 (the hike in Ready Reckoner rate; the addition of Metro Cess) are impacting buyer sentiment and future growth trends in real estate, across Thane, which is a leading conglomeration within the Mumbai Metropolitan Region (MMR).

The first has created a situation where from impacting margins, we are now faced with project viability issues across ongoing projects; the second has impacted buyer sentiment. While numbers of site visits as we move into April 2022 are largely in line with what we expect in summer; the 'decision makers' are showing signs of gradually turning into 'fence sitters'.

Real estate supports more than 250-plus ancillary industries; is among the biggest creator of jobs in the Indian economy as also supports GDP growth. Given this, any crisis being faced by real estate has multiple impact points across the economy. Home seekers will obviously face difficulties if the existing challenges result in project completion slowing down or getting impacted in any way.

 CREDAI MCHI Thane is among the leading real estate development associations in Maharashtra, and as President of CREDAI MCHI Thane, I request authorities to consider the challenged situation being faced by real estate in Maharashtra, and help out in terms of support which would help tide over this highly challenged situation.

MahaRERA as a regulatory authority can sympathetically consider time over runs amidst the challenged time; the State Government can provide help in different ways which would also assist Maharashtra's real estate tide over this highly challenged situation. From the Centre, we suggest a slow down if not a total ban on steel exports; this is a possible move which can bring down steel prices, also give us a set off of GST which will reduce our construction cost.

The Reserve Bank of India is balancing the aspects of controlling inflation and supporting growth; we hope the upcoming review of Monetary Policy will see repo and reverse repo rates not being impacted in ways which would result in any hike in home loan interest rates.

Real estate has witnessed phenomenal growth over the past few months; this is part of the economic revival which India needs. We  are at a crossroads as we enter the new fiscal year. Hopefully the authorities will do the needful and provide support to one of the largest contributors to the country's GDP growth, real estate.

- Jitendra Mehta

President, CREDAI MCHI Thane

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