Responding to Parekh' s statement, the President of National Real Estate Development Council (UP) RK Arora said that it is the best time to buy property since the prices will see an increase of 15 per cent in the days to come.
"The government should incentivise developers as we are providing food, stisation and salary to the labourers and we do not have enough money. One-time repayment facility should also be provided to developers so that they can start construction works to complete the projects," Arora added.
Director of Nirala World, Suresh Garg, said that Parekh may be referring to those luxury projects whose prices range between Rs 25,000-Rs 30,000 per square feet and have good margins. They can reduce prices by 20 per cent but Noida, Greater Noida is an affordable housing region.
"The affordable housing prices are already very low. We have been witnessing a slowdown for the last 5-6 years. Here, some developers are selling homes cost to cost or below cost. If any developer reduces the cost further then his situation will be the same as Amrapali," Garg added.
"The government should also lower the interest rates on housing to 5 per cent. This will encourage home buyers to purchase properties and will subsequently revive the real estate sector," Garg added further.
Speaking at a webinar orgsed by Naredco on Tuesday, Parekh had said, "The real estate prices in the country would correct by up to 20 per cent in the wake of coronavirus pandemic and the resultant nationwide lockdown."
"The prices of real estate have to come down, and will come down. I believe Naredco's estimate is around 10-15 per cent. One must be prepared for even 20 per cent," Parekh added.
Subodh Goel, Secretary, Credai Western UP chapter, said that there is no question of reducing the cost of their properties. The property prices will be stable or will see an increase as the country may face rising labour and raw material cost once the lockdown is over.
"Only restructuring of loan is not going to help the industry, we should get interest waiver for a year. We request the government to give us a one-year extension for the completion of our projects without any penalty," added Goel.
( With inputs from ANI )