Experts predict bright future for real estate sector post covid-19 during an interactive session on Ins & Outs – Impact 2020 on Real Estate Investments & Road Ahead organized by PHD Chamber of Commerce and Industry (PHDCCI) here today.
Delivering the Theme Address, Mr. Rajeev Talwar, Former President, PHDCCI & Chairman, National Real Estate Development Council mentioned that the region comprising Chandigarh, Punjab, Haryana, H.P. and J&K is a fast changing and very vibrant region and can help Real Estate sector to establish major changes in modernization and skilling people.
The impact of covid-19 has resulted in increase in demand for residential properties. There is plenty of scope for commercial segments in warehousing, logistics and data centers.
He added that there is need to adopt modern technology and go for high rise buildings to lower the land cost. Digitalization is the need of the hour. He said lots of towns and cities are coming up and we need much more freedom to construct. For affordable housing, land cost should be reduced.
He said the Maharashtra Government has reduced the stamp duty to half but the revenue collection has gone up there because of increased transactions. Other states should follow the example. He said the real estate has the capacity to boost the economy.
He suggested that property ownership among women should be incentivized. The beginning can be done with small affordable houses. People should be encouraged to have property in name of girl child. This will not only provide them both financial and emotional security.
Earlier, welcoming the speakers and participants, Mr. Madhu Sudan Vij, Chair, Chandigarh Chapter, PHDCCI said that covid-19 pandemic has impacted all businesses but the scale of impact on Real Estate sector and allied industries, has been unprecedented. He said that the Government has announced several relief packages for Real Estate Sector that are expected to speed up the revival of the sector. He added that the residential sector is expected to grow significantly with Central Government aiming to build 20 million affordable houses in urban areas and other segments of Real Estate are also expected to grow significantly.
Participating in the Panel Discussion, Mr. Ashwinder R Singh, CEO – Residential Bhartiya Urban said that real estate income is a hedge against inflation because property prices rise with rising inflation. He said the covid-19 pandemic has boosted the housing sector as the millennials are now showing great interest in residential properties. He stated that in Chandigarh, green buildings are becoming popular as people prefer clean and open houses.
Sharing his views during panel discussions, Mr.. Rohit Goyal, Senior Director – Capital Markets, India Cushman Wakefield said that lowering of interest rate and rebate in stamp duty given by some States is incentivizing people to invest in residential properties. He added that the demand for data centers is also high and need to be equipped to handle high internet traffic.
Participating in the discussions, Mr. Mudassir Zaidi, Executive Director- North Knight Frank India shared that impact of covid-19 in 2020 has been significant. The pandemic has provided huge opportunity for Real Estate sector. To incentivize home buyers, the Maharashtra Government has reduced the stamp duty.
He said the hospitality segment has been adversely impacted by covid-19 but as the pandemic subsides, opportunities will emerge in all segments of Real Estate Sector. The adoption of new technologies and efficiencies will define how the Real Estate sector performs in future.
Mr. Pawandeep S Bawa, General Manger & Business Head, Punjab, Haryana and Himachal Pradesh, HDFC Ltd stated that Real Estate is in driving the economy. Real Sector acts as a barometer regarding the health of economy. He said real estate sector took a big hit due to covid-19 but timely Government initiatives have boosted the sector.
He said 70% of house loan applications are processed digitally but remaining processes need to be done physically. He said 80% of the disbursements are done digitally.
Moderating the Session, Mr. Jagjit Singh Majha mentioned that the Real Estate Sector is a major contributor to national GDP. He added that if India is to become a 5 trillion dollar economy, the Real Estate should be supported and boosted.
Presenting the formal Vote of Thanks, Mr.. Suvrat Khanna, Co-Chair, Chandigarh Chapter, PHDCCI termed the discussions as very enlightening and fruitful.
PHD Chamber of Commerce and Industry’s summit was supported by DLF India; Multani Pharmaceuticals Ltd; UFLEX Ltd; JK Tyre & industries ltd; Marble City; Paramount Cables ltd; SMC Investments and Advisors Limited; Blossom Kochhar Aroma Magic; Comtech Interio; DCM Shriram Industries Ltd; Radico Khaitan ltd; Ajit Industries Pvt Ltd; Synergy Environics Ltd; Timberworkz and IFFCO.
