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Government worried for the Real Estate Sector due to Reverse Migration

Government worried for the Real Estate Sector due to Reverse Migration

The reverse migration of labourers and construction workers, to their native places during the pandemic coupled with break in the supply chains of construction material, construction activities of real estate projects across the country were adversely impacted.

Unfortunately, the government doesn’t have a way to track of the actual number of job losses and financial losses in the real estate business.

The Ministry of Housing and Urban Affairs (MoHUA) issued an advisory to all States and Union Territories (UTs), as well as their regulatory authorities, requesting a 6-month extension of the completion date or a revised/extended completion date for all real estate projects registered under the Real Estate (Regulation and Development) Act, 2016 [RERA], with a further 3-month extension if necessary.

The Reserve Bank of India allowed lending institutions to extend a total moratorium of 6 (3+3) months on payments due between March 1, 2020 and August 31, 2020, in order to encourage house purchasers, developers, and other borrowers.

In addition, an infusion of Rs 75,000 crore for Non-Banking Financial Corporations (NBFCs), Housing Finance Companies (HFCs), and Micro Finance Institutions (MFIs), as well as an additional outlay of Rs 18,000 crore for the Pradhan Mantri Awas Yojana – Urban, have aided the construction and realty sector’s revival.

The Real Estate (Regulation and Development) Act was passed in March 2016 to guarantee that the real estate sector is regulated and promoted in an efficient and transparent way, as well as to safeguard homebuyers’ interests.

By April 2, 2022, 31 states and the District of Columbia had established Real Estate Regulatory Authorities, 28 states and the District of Columbia had established Real Estate Appellate Tribunals, 78,225 real estate projects had been registered under RERA, and 61,551 real estate agents had been registered under RERA.

The Real Estate Regulatory Authorities in the United States have resolved 87,633 complaints.

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