Parekh asked the developers to concentrate on completing the pending projects on time, rather than going in for new launches. “You can also get into joint arrangements with corporates to complete projects,” he said while asking developers to abstain from borrowing heavily and rather get an equity cushion.
According to him, the demand for commercial real estate would continue in the long run.
In his recommendation to the state government, Parekh mentioned that a waiver of stamp duty for a limited time period just before the festive season would help in reviving demand as well.
“There is also a need to review the ready reckoner rates on a periodic basis. And also allow staggered payments on levies if you want the developers to come back. If this is not done, no one would be able to pay,” he said.
Speaking on his suggestions to the Reserve Bank of India, Parekh stated that the apex bank needs to take measures like buying commercial papers from the private sector directly.
“I also suggest a one- time loan restructuring and increase the working cycle to a 180 day from the present 90 days. Else this will result in a larger number of defaults and NPAs in the system,” he pointed out at the webinar attended by over 8,000 realty developers across the country.
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