The real estate
sector, while contributing to the GDP growth, and providing employment, has a multiplier effect on 250-plus allied industries.
“While, in the realty sector, the restructuring will mostly be at a project level, the move will help the sector maintain liquidity, debt serviceability and in turn increase buyers' confidence and bring a turnaround in the sector and put a growth trajectory for the market as well,” said Bijay Agarwal, MD of Bengaluru-based real estate
player Salarpuria Sattva.
Even though top realtors are now seeing green shoots in the residential property segment, sales had dropped 81 per cent in the top Indian cities in the April to June quarter of this year, while new launches had declined 98 per cent. In the office space segment, the top 6 markets of Delhi NCR, Mumbai, Bangalore, Chennai, Pune and Hyderabad have seen a massive decline in absorption.
From nearly 32.3 million sq ft of space absorbed in the first half of 2019, the first half of 2020 absorption fell to 13.7 million sq ft. Similarly, the cumulative supply addition was 13.5 million sq ft in H1 2020, compared to 26.6 million sq ft in H1 2019, according to a Savills India report.