New Delhi: The ongoing coronavirus outbreak and its impact on the economy have pushed sentiment in real estate to its all-time low. Both residential and commercial real estate sectors are expected to be hit in terms of launches, sales, and prices. The sector has not only taken a hit due to the lockdown to curb the spread of virus but has been ailing for quite some time now.<\/p>\n
Vikas Oberoi of Oberoi Realty speaking to ET Now answers questions like How can the real estate sector crawl back to life? Has the coronavirus crisis put the sector on a ventilator? Does this sector need a huge relief package?<\/p>\n
Talking about the role of the realty sector, Oberoi said: “It’s a globally known fact that spending on real estate has a multiplier effect. If you spend on real estate it goes to cement, steel, labour, contractor, multiple people. The government itself earns 28-30 per cent of our revenue growth through direct and indirect taxes.”<\/p>\n
On whether the sector needs a relief package, he said that demand needs to be created and not asking for money in our hands.<\/p>\n
He further said that this is an opportunity where we can take advantage of the current situation and let people have money in their hands so that they and buy houses.<\/p>\n
Talking about inventories and demand, he said that “less than a thousand ready apartments with OCs ready to be sold in Mumbai.”<\/p>\n
He added that with labour going away, the sector is expected to see a supply constraint and believing that huge inventories will drag down prices is a myth.<\/p>\n