Bigger homes: Builders must deliver, governments must facilitate

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The real estate sector is one of the economy’s most crucial areas the fortunes of which affect the fate of several other industries such as iron and steel, cement, paint, home décor items, and electricals. While millions of lost jobs, slashed wages, dipping consumer confidence have paralysed sales, a simultaneous and significant trend has been visible in the country’s huge real estate scenario.

Compulsions of work from home and schooling from home have meant that many families have faced a sudden and acute need for two more rooms, or at least one, and this trend seems likely to continue in the foreseeable future. Many companies have already announced work from home schedule for the year and no government is going to risk the decision of throwing open the school compounds to the students, especially with the possibility of a third wave lurking round the corner.

There is a constant rise in inquiries for dwelling units with 3-4 bedrooms with many regions including the NCR, Chennai, Pune, and Mumbai recording more deals involving bigger apartments compared to earlier years. Softening of interest rates has also helped sales.

As restrictions ease, to help this crucial sector, state governments should consider lowering stamp duty on registration on purchase of property just as Maharashtra government did to pep up the market. It is likely that the spurt in sales would more than compensate the governments for the revenue loss in each deal.

The builders also have a sacred duty. They should deliver according to the promise of quality and time. Over the past few years, many Indians have suffered delinquent developers who have not handed over homes despite full or partial payments years ago. Worse, the National Company Law Tribunal has not been able to help the buyers by taking quick action against errant developers.