• • Residential - Prices are expected to come down by at least 15-20% in most micro markets. However, with lower number of launches in the last couple years and improving (albeit slowly) demand, the unsold inventory is reaching more palatable levels + mortgage rates are also trending lower, both positive signs!
• • Commercial – 2019 was a very strongest years for Commercial Real estate with record absorption of >60mn sqft. However, 2020 will be a very challenging year, absorption maybe 30-40% lower than 2019 coupled with rental yield and collection pressures.
• • Retail and Hospitality – Unfortunately, this sector will face severe headwinds, the Government will need to come out with measures to ensure they have a softer landing.
• • Industrial, Warehousing – A small, but fast-growing space in Indian Real Estate. This may be the bright spark within Real Estate in 2020, due to the demand from e-commerce and manufacturing.

• • The Construction and Real Estate sector, after Agriculture, is the largest employer in the country. Keeping this in mind, rational demands made by the various Industry Association’s should be debated seriously and implemented.
• • A large stimulus is needed to support the sector, similar to a TARP (Troubled Asset Relief Program) the United States instituted post the 2008 Global Financial Crisis, or maybe issue tax-free bonds for the Real Estate sector.
• • Banks and especially NBFCs need to be given the support to continue lending to the Real Estate sector. It is estimated that approximately Rs.700,000 Cr has been collectively lent to the sector, if the liquidity stops flowing to complete ongoing projects, a large part of this capital will come under severe stress. Many more funds like SBI Capital’s SWAMIH fund are required to help provide liquidity to the sector.
• • Subvention schemes should be re-allowed for home buyers. The consumer neither has the confidence or the Capital to make investments in this uncertain environment. One needs to provide support to them in order to bring them back to buying Real Estate.
• • Help ease the cost pressure on Projects by reducing GST rates on Works Contracts and allowing input credit on project sales. Additionally, the State Governments need to revisit ready reckoner rates, reduce stamp duty, premiums and levies charged on projects as these are making many projects unviable.

• • The RBI needs to allow a one-time restructuring of loans like they did in 2008. Current norms may also need to be relaxed to allow the trading of these loans so that distressed funds can come in with much-needed liquidity.
• • The RBI should also look at buying Commercial Paper, Private Debt like many other Countries have recently done. This will send a strong message and improve liquidity in the system.
• • Banks should pass on the benefit of lower Interest rates to the Developers and Consumers immediately.
• • Banks and NBFCs should closely monitor each project cash flow and help the developers stay on track. It is a collective responsibility of all stakeholders in the Industry to bring the confidence back.

The above-mentioned Application and Annexures can be submitted in writing either in person or through email (***@igrmaharashtra.gov.in) with Digital Signature of Builders / Developers or Builders / Developers Authorised signatory at respective Joint District Registrar Office. In either of the cases, the Builders / Developers are also required to send the Soft Copy of Word file of the Agreement for Sale.

After Submission of application Joint District Sub-Registrar will verify and scrutinise the documents and send mail of approval / Disapproval order or Regret Letter in respect of the application.
Builder / Developer has the right to request the Deputy Inspector of General Registration to reconsider the Disapproval Order or Regret Letter issued by Joint District Registrar. The decision of Deputy Inspector of General of Registration will be final.

• •The key to strategy is to know what not to do’ – if you are a land aggregator turned developer, tie-up with someone who has Development and Financing (plus Cash Flow management) capabilities. Collaborative joint ventures and joint development agreements are needed; the Industry cannot risk the consumer being bitten again due to inefficient players and stalled projects.
• • The environment is challenging but work on capitalizing projects at whatever the cost may be, high-interest rates or a steep reduction in expected sale price. Survive this time, there will be many years and lots of opportunity in Indian Real Estate to thrive after surviving.
• • Focus on how much concrete you have poured in a month, as opposed to project profits. The market will determine price, developers should focus on raising capital and pouring concrete.
• • Constantly engage with the channel partner (broker), vendor and supplier networks. The Real Estate sector is going to have a challenging road ahead; one needs as many evangelists, well-wishers and industry relationships as possible so that all stakeholders come out stronger.

• • Post the expected 15-20% price correction, on a risk-adjusted basis the Residential Real Estate market, is looking attractive in most micro-markets across India. Cost of capital is also trending downwards for home buyers. While we are not calling a bottom, if you are looking to buy a home, this is a very good time to start doing active research.
• • There are many credible developers and good projects in each micro-market. Read the project details on the RERA website and study the track record of the developer.
• • The Indian Real Estate sector needs liquidity! As much as it will absorb liquidity in any form, the sector really needs liquidity in the form of equity. The consumer and retail investors need to come back into the market in order to help revive what has been a very lucrative asset class, since independence.