{"id":1072,"date":"2020-05-09T11:58:09","date_gmt":"2020-05-09T11:58:09","guid":{"rendered":"https:\/\/www.propertypistol.com\/blog\/?p=1072"},"modified":"2024-01-18T14:26:35","modified_gmt":"2024-01-18T08:56:35","slug":"important-measures-developers-must-follow-for-post-lockdown-revival-of-real-estate","status":"publish","type":"post","link":"https:\/\/www.propertypistol.com\/blog\/important-measures-developers-must-follow-for-post-lockdown-revival-of-real-estate\/","title":{"rendered":"Important measures developers must follow for post-lockdown revival of real estate."},"content":{"rendered":"\n<p><em>The National Real Estate Development Council (NAREDCO) recently announced the post-lockdown measures that Government needs to follow for real estate revival.&nbsp;<\/em><\/p>\n\n\n\n<!--more-->\n\n\n\n<figure class=\"wp-block-image\"><img decoding=\"async\" width=\"760\" height=\"400\" src=\"https:\/\/www.propertypistol.com\/blog\/wp-content\/uploads\/2020\/05\/Lockdown-revival-of-real-estate.jpg\" alt=\"\" class=\"wp-image-1073\" srcset=\"https:\/\/www.propertypistol.com\/blog\/wp-content\/uploads\/2020\/05\/Lockdown-revival-of-real-estate.jpg 760w, https:\/\/www.propertypistol.com\/blog\/wp-content\/uploads\/2020\/05\/Lockdown-revival-of-real-estate-300x158.jpg 300w\" sizes=\"(max-width: 760px) 100vw, 760px\" \/><\/figure>\n\n\n\n<p>To avoid the spread of the <a href=\"https:\/\/www.propertypistol.com\/blog\/digital-technologies-developers-are-adopting-amidst-covid-19\/\">COVID-19 pandemic<\/a> the lockdown has been extended, National Real Estate Development Council (<strong>NAREDCO<\/strong>) determined that the realty sector may not continue the business-as-usual for an unforeseeable length of time.&nbsp;<\/p>\n\n\n\n<p>Therefore, NAREDCO suggested the\nGovernment to take some measures to help support the industry revival after the\nlockdown is lifted, which includes:<\/p>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_69 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title \" >Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-5'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/www.propertypistol.com\/blog\/important-measures-developers-must-follow-for-post-lockdown-revival-of-real-estate\/#Approval_validity\" title=\"Approval validity\">Approval validity<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-5'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/www.propertypistol.com\/blog\/important-measures-developers-must-follow-for-post-lockdown-revival-of-real-estate\/#Moratorium_on_land_payments\" title=\"Moratorium on land payments\">Moratorium on land payments<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-5'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/www.propertypistol.com\/blog\/important-measures-developers-must-follow-for-post-lockdown-revival-of-real-estate\/#GST_relaxations\" title=\"GST relaxations\">GST relaxations<\/a><\/li><\/ul><\/nav><\/div>\n<h5 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Approval_validity\"><\/span><strong>Approval validity<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h5>\n\n\n\n<p>Different\u00a0<strong>real estate builders<\/strong>\u00a0think that if the government extends the validity of all building permissions, property licenses, consents, and other approvals granted to the developers by at least a period of one year it will be beneficial. One more option they have suggested is to make the validation of the licenses and approvals more streamlined, with no need for developers to approach authorities in person.\u00a0<\/p>\n\n\n\n<p>As we all know that the current economic\nsituation is reeling under financial pressure due to business coming to a\nstandstill. Thus, developers expect to be allowed to defer payment of renewal\nfees or charges by at least 3 months.&nbsp;<\/p>\n\n\n\n<h5 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Moratorium_on_land_payments\"><\/span><strong>Moratorium on land payments<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h5>\n\n\n\n<p>Once the lockdown is lifted, it seems real estate investment and property purchase may again be considered as a safe investment option by consumers. Homebuyers and investors will exercise caution because of the uncertainties of\u00a0<strong><a href=\"https:\/\/www.propertypistol.com\/blog\/remarkable-trends-that-may-begin-during-corona-pandemic\/\">the coronavirus outbreak<\/a><\/strong>, which will certainly affect the cash flows for developers; resulting in the developers\u2019 failure on land payments to the government.\u00a0<\/p>\n\n\n\n<p>In order to avoid these developers have\nrequested to allow them a one-time moratorium without any interest in making\nthe land payments who have been allotted land by the government\nauthorities.&nbsp;&nbsp;<\/p>\n\n\n\n<h5 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"GST_relaxations\"><\/span><strong>GST relaxations<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h5>\n\n\n\n<p>The Government is pondering to introduce\na GST relief package for the economy to equipoise the ill effects of the\npandemic. Some of the features that include in the package are a slash in the\nGST rate charged for the real estate sector, lessening the burden of businesses\nstrapped with liquidity shortages, providing sales for which payments have not\nbeen received as consequences of the Government-imposed lockdown. The tax may\nbe imposed through a cash-based system rather than the current invoice-based\nsystem.&nbsp;&nbsp;<\/p>\n\n\n\n<p>With other industries like restaurants\nand hospitals, the realty sector is also being considered for a six-month\nsuspension of GST payments.&nbsp;<\/p>\n\n\n\n<p>All the above relaxation Government measures will focus on keeping the business of real estate afloat. Also, these measures, if implemented, will play a crucial role to bring the economy of the country to get in motion again. Due to the current announcement scenario, it seems that the Centre ordered the extension of the lockdown, thus many more constructive strategies are required to be put in force.<\/p>\n\n\n\n<p style=\"font-size:12px\"><em><strong>Disclaimer:&nbsp;<\/strong>The views expressed above are for informational purposes only based on industry reports and related news stories. Propertypistol does not guarantee the accuracy, completeness, or reliability of the information and shall not be held responsible for any action taken based on the published information.<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The National Real Estate Development Council (NAREDCO) recently announced the post-lockdown measures that Government needs to follow for real estate revival.&nbsp;<\/p>\n","protected":false},"author":2,"featured_media":1075,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_eb_attr":"","_lmt_disableupdate":"","_lmt_disable":"","footnotes":""},"categories":[26],"tags":[62],"class_list":["post-1072","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-real-estate","tag-realty-amid-covid","entry"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v23.3 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Important measures developers must follow for post-lockdown revival of real estate - 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