Developers should compromise prices post COVID- Deepak Parekh
HDFC Ltd Chairman, Deepak Parekh has urged Real estate developers to compromise on the property pricing to sell-off unsold inventory to generate liquidity rather than going in for costly borrowings post the COVID crises at the Housing For All 2020 knowledge series webinar organized jointly by the real estate industry body NAREDCO and CREDAI.
Deepak. Parekh stated that “a bit of compromise in the prices by developers will revive the real estate sector on demand stimulus on the next six months. The buyers who are in liquidity should buy properties now and the inventories will be available on good price,” He pointed out.
According to Parekh, the demand for commercial real estate would continue in the long run. “Post the lockdown scenario, it won’t be a situation where the entire work force would want to work from home, people would still need to meet others, so in the long run, the demand for commercial real estate will not evaporate,” He said.
Parekh in his speech also advised developers to abstain from borrowing heavily. “Borrowings are a double edge sword. While you can leverage and grow during good times, in bad times, it can finish off your business. He also advised the developers to concentrate on completing the pending projects on time, rather than going in for new launches. “You can also get into joint arrangements with corporates to complete projects,” he said.
Dr. Niranjan Hiranandani, President, NAREDCO explained that though the Coronavirus pandemic seems to be like the most difficult time and a dark period for the real estate, it is not the case so. “We should use this as an opportunity to overcome these challenges and strengthen ourselves to emerge resilient in these testing times,” he said.
Rajan Bandelkar, President, NAREDCO West stated that the government needs to come forward with measures to help out the industry. “Real estate being the second largest employer in the country post the agricultural sector, any impetus given to it has a multiplier effect on other sectors as well,” He said.