‘Punjab govt, Centre should provide liberal financial aid to realty sector’

Industry and Lockdown

Kuldip Bhatia

Ludhiana, June 3

With development of 10 colonies, including an affordable housing project, commercial pockets and several built-up housing complexes under his belt during nearly three decades as the head of GK Group, Gulshan Kumar has gone through many ups and downs in the realty sector. But he feels that the setback caused by over two months of complete lockdown owing to the Covid-19 outbreak had literally pushed the realty sector deep down with a stone tied to its neck.

How has the lockdown affected industry?

The first and foremost sufferer in the realty sector is luxury segment along with commercial properties with high rental income. People are suffering due to cash crunch and this will lead to little demand for expensive houses and premium commercial sites/properties. Land prices have gone down, and to make the matters worse, there are no buyers for residential houses or commercial properties at present.

Normally, labour working in housing projects or development works in colonies is provided accommodation by the developer. Even though construction work has stopped during the lockdown, we bear the responsibility of providing shelter, food and medical care to hundreds of construction workers while inflow of funds has completely dried up. — Gulshan Kumar, Head, GK Group

What problems do you face during the lockdown?

The lockdown took the entire nation by surprise. Normally, labour working in housing projects or development works in colonies is provided accommodation by the developer. Even though construction work had stopped during the lockdown, we had the responsibility of providing shelter, food and medical care to hundreds of construction workers while inflow of funds had completely dried up. Now that the lockdown restrictions have been eased, the construction industry is facing several problems such as steep rise in prices of cement and other construction material.

How do you stay focused in tense situation?

One positive aspect of the lockdown was spending quality-time with family and making future plans to revive the housing segment and stay afloat. Then the very idea that hundreds of families of workers, engineering, managerial and other site/administrative staff were dependent on our projects, kept us going.

What are your expectations from the government?

Since the purchasing power of the majority of people would be adversely affected post-lockdown and revival of economic activity would take its own time, both the state government and Centre should come to the rescue of real estate sector by making liberal financial assistance available at cheaper rates of interest and lowering taxes. In particular, the state government should give concession in license fee, external and internal development charges for development of colonies and norms for electrification of residential/commercial colonies be eased.

Where do you foresee realty sector after lockdown?

The Covid-induced lockdown has hit the segment where it hurts the most and the very survival seems bleak. It will take some time and a lot of effort, but I am sure that with collective efforts and determination, realtors will definitely overcome the adversities of the lockdown.

Join Whatsapp Channel of The Tribune for latest updates.