disease (Covid-19) on the economy.
However, Amit Goenka, managing director at Nisus Finance, said there was a question mark on capital available. “Domestic investors will be cautious about committing money in private equity funds and foreign investors will not be willing to invest till the situation improves globally,” Goenka said. “We will be cautious in deploying our funds. We have to recalibrate our strategy and see which investments are averse to economic shocks,” he added.
Fund managers said demand for homes will be muted for the next six months.
Sunil Rohokale , managing director at ASK group, said green shoots had emerged beginning November last year in the residential markets
of Pune, Chennai, Bengaluru and Delhi, but the Covid-19 and the resultant nationwide lockdown
impacted the recovery.
“It will take 3-6 months for the sector to reach the pre-March levels,” he said, adding that long-term investors would return to residential properties in the next six months.
Mittal said with demand being muted for at least six months, developers would face severe cash flow challenges that could slow the pace of construction further. “This could lead to projects being delayed by at least four to six months and, depending on the pace of recovery of the entire economy, this could extend up to nine to 12 months, too,” Mittal said.