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Overcoming Stagnancy in the Realty Market with Liquidity Infusion: The Impact of COVID-19

Liquidity Infusion - Gyproc India
COVID-19 impact: Liquidity infusion is essential to overcome the stagnancy in the realty market

Source: Construction Week

Date: 10 April 2020

The realty market is reeling under immense pressure due to COVID-19; however, lowered interest rates, reduced tax burden and turnaround in liquidity and labour would help the sector to attain normalcy.

The construction industry that was already reeling under pressure due to the implementation of Real Estate (Regulation and Development) Act 2016 (RERA) and Demonetisation has become further distressed with the outburst of COVID-19 crisis. However, since it is the most significant employment generator in the country, the Government, builder fraternity and the raw material suppliers must work together on the road to recovery.

Lowering the interest rates and reducing the tax burden would address the demand side of the issues. On the other hand, turnaround on liquidity and labour would help in overcoming the supply-side challenges.

In these times of scarce supply, developers must promote faster construction technology with an increased focus on sustainability. Today, sustainable construction is top of mind of the potential home buyers.