Real Estate Coronavirus stimulus package – Prime minister, on May 12, 2020, announced a Rs 20-lakh-crore stimulus package to support the economy in the aftermath of the Coronavirus crisis
RERA Licensed Real Estate Agent in Hyderabad
India’s real estate sector emerged among the big beneficiaries, when finance minister Nirmala Sitharaman, on May 13, 2020, announced the details of the Rs 20-lakh-crore stimulus package launched by the prime minister a day earlier, to counter the adverse impact of the Novel Coronavirus on India’s economy.
Among the several measures announced to support a faltering economy, the government plans to define the entire period during which the pandemic persists, as an ‘Act of God’ – known as ‘force majeure‘ in legal parlance – as far as builder-buyer agreements are concerned. This means that developers will not have to pay penalties for delays in project deliveries, for the period during which the construction activity has been halted, because of the pandemic. Also, real estate authorities will be directed to extend project registrations and completion dates, if these were falling after March 25, 2020.
As India planned to enter into the fourth phase of the lockdown, from May 18, to stem the number of COVID-19 infections, prime minister Narendra Modi, on May 12, 2020, announced the Rs 20-lakh-crore stimulus package to support the economy. Modi has extended the lockdown in India till May 30, albeit with some riders, as Asia’s third-largest economy attempts to mitigate the sweeping damages caused by the pandemic.
These new announcements will also help lift the home buyer sentiment, kick-starting the demand cycle for mid-range homes, as well as affordable housing. While the cost of home purchases would significantly go down for home buyers, as home loans are likely to become cheaper, experts rule out any remarkable downward movement in property prices. Therefore, it would be too early to predict.
