‘Your Best Bet Is To Sell’: Commerce Minister Goyal Asks Real Estate Developers To Sell Properties At Reduced Prices

Amid the Coronavirus pandemic and its economic fallout, Union Commerce Minister Piyush Goyal has asked the real estate developers to reduce prices and sell their inventory rather than waiting for the market to improve, reports Economic Times.

In a video conference organised by the National Real Estate Development Council (NAREDCO), the union minister told the real estate developers that the market will not improve in a hurry and that their best bet is to sell.

“If any of you feel that government will be able to finance in such a way that you will be able to hold longer and wait for the market to improve; the market is not improving in a hurry. Things are seriously stressed and your best bet is to sell,” Goyal was quoted as saying to the developers.

He further said that the government is trying to offer some concession in ready reckoner rates. However, he suggested that even if the government offer concession in the rates, the developers will have to sell their stock.

Those developers who had sold the inventory, were less leveraged or repaid their bank loans had survived the downturn, Goyal reminded the developers. He added that those developers who were burdened with large loans and held on to their pricing had suffered.

According to the minister, developers will have to make a choice whether to be stuck with the inventory and default with the banks or they could move the inventory and look at it as a bad decision or an unfortunate situation and move forward.

Amid the ongoing covid-19 pandemic, the government has taken several steps to help the realty sector, including allowing a six-month extension in completion timelines for realty projects and extending the credit link subsidy scheme (CLSS) for Middle Income Group (MIG) by one more year until March 2021.

Besides, the Centre has also advised states and union territories to extend time-bound realty permissions validity by nine months.