How inventory clearance in the current situation is going to benefit Investors?
SBI chairman Rajnish Kumar, in a virtual conference organised by realtors’ body NAREDCO, urged real estate firms to clear unsold inventories & maintain standard accounts. He emphasised that although RERA & demonetisation brought discipline & transparency, sucked black money out of the system, there’s a long way to go. Since real estate sector contributes significantly to GDP, it is in the best interest of masses to keep it on track. There should be a collective effort from the developers’ end towards achieving ‘housing for all’ by hastening the process of construction & selling inventories quickly. The developers, on the other hand, have been assured of full support from the banking side both in terms of keeping the interest rates low & extending moratorium period, if need be.
Inventory clearance move by the developers is going to be a profitable affair for the investors. The developers will offer huge discounts to clear the unsold inventories. This along with the added benefits of low home loan rates & moratorium on EMIs owing to COVID-19 brings the perfect time for the investors & end-users to buy a property. With the prices at an all-time low & RBI’s measures to mitigate the economic impact, the market conditions are apt for real estate investors. When COVID crisis is over and economy bounces back, the prices will witness an upsurge promising high returns to the investors.
Also, during this time when the global economy is facing crisis, stock prices are tumbling down, Gold prices are witnessing ups & downs, real estate turns out to be the safest option owing to the fact that it is immune to market fluctuations. Investors can resort to the safest haven and contribute to the economy. Property buying involves no risks in these uncertain times.
