New lockdown guidelines: Big boost for real estate sector amid lockdown extension!

Amid news of Coronavirus lockdown extension, the Narendra Modi Government today released the guidelines to be followed during lockdown 2.0. Offering some relief to construction sector, the government has permitted activity to resume in non-Covid-19 hotspots, provided they follow strict social distancing guidelines. However, the guideline clearly mention that no construction worker will be brought from outside and only those currently available on the site will be able to resume work. The real estate developers have hailed this move of the Narendra Modi government.

Commenting on the Narendra Modi Government's move during lockdown extension; Anuj Puri, Chairman at ANAROCK Property Consultants said, "Considering the ongoing scenario, the move to start at least some of the construction activity on project sites, even with limited workforce, is certainly welcome. That said, since many migrant workers had left for their villages post lockdown 1.0 announcement, we will have to wait and see how many are actually left back to resume work. Migrant workers comprise at least 80 per cent share of the total 44 million workforce in the construction sector currently." Puri went on to add that as far as construction activity in non-hotspots is concerned, developers will need to focus on resuming construction on projects that are already nearing completion and have a completion deadline within 2020.

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Speaking on the relief for the real estate sector during COVID-19 lockdown extension Dr Niranjan Hiranandani, National President at NAREDCO said, “The relaxation has come at the right time as the situation was very grim to keep construction workers at the site afloat. With this Order, the economic drivers of the country will start moving again, even as we extend the lockdown. Considering the estimated loss of Rs 26,000 crore per day to the Indian economy as a result of the lockdown, this relaxation in lifting of lockdown is a constructive step. HIranandani further said that the real estate industry acknowledges the positive impact this will have in handling the migrant crisis and avoid any strain further to the COVID19 a Human -economic crisis.

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“Allowing phase-wise reopening of economic activity with precautions being adhered to is the right step refuel the economic growth trajectory of the country," he concluded.