Question : Impact of COVID-19 on Real Estate Sector

(a) whether about 90 percent of real estate developers feel that the second wave of the Covid-19 has been more devastating on their business than the first one as new sales and collections have fallen drastically;

(b) if so, the details thereof and surveys done and reports prepared, State-wise comparatively during the last five years and pre and post Covid situation period also; and

(c) whether most developers (95 percent) fear project delays because of localised lockdowns across the country and the details of labour shortage, financial constraints, approval delays, increased construction costs, and weakening customer demand which are key challenges highlighted by developers as about 95 percent of builders said customers had postponed purchase decisions due to the second wave and if so, the details thereof and the steps being taken to address these issues?

THE MINISTER OF STATE IN THE MINISTRY OF HOUSING AND URBAN AFFAIRS

(SHRI KAUSHAL KISHORE)

(a) to (c): No specific instances have been brought to the notice of the Ministry of Housing and Urban Affairs indicating that the second wave of COVID-19 was more devastating on the businesses than the first one. No survey or report has been done or prepared by the Ministry of Housing and Urban Affairs on this subject.

In view of global pandemic of COVID-19, Ministry of Housing and Urban Affairs has issued the necessary advisory to all States/Union Territories and their Regulatory Authorities for issuance of requisite orders/ directions under the enabling provisions of Real Estate (Regulation and Development) Act, 2016 (RERA) to invoke force majeure clause and extend the completion date ‘suo moto’ or revised / extended completion date for all real estate projects registered under RERA for a period of 6 months, where completion date expires on or after 25th March, 2020 and further extension of 3 months, if the situation so demands, for the reasons to be recorded in writing and also extend concurrently the timelines of other statutory compliances under RERA in accordance with the provisions of Act. Till date, Real Estate Regulatory Authorities of 27 States/UTs have issued orders/circulars for extension ranging from 6 to 9 month period in their respective jurisdiction.

In addition to the above, Government has taken various fiscal and financial measures to support the real estate sector under Atma Nirbhar Bharat Abhiyaan and in Budget 2021-22.

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