Impact of Covid 19 on Real Estate Housing Finance Sector

The financial sector will be the most hit due to problems in the real estate sector. Liquidity will be adversely hit. According to the sources, The Reserve Bank of India has taken unprecedented steps, proposing to infuse ₹ 3.74 lakh crore liquidity through cash- reserve-ratio cut of 1%, targeted long- term repo auction, marginal liquidity facility, a deep repo rate cut of 75 bps. More importantly, allowing a three- month moratorium on all-term loans and working capital. This will provide a breather to all those borrowers whose cash flow got impacted due to COVID-19. Banks, financial institutions, and HFCs/NBFCs will be able to defer non- performing assets recognition. Property rates are also expected to be cut by developers by 10%-15%. The demand for housing by organized sector employees for houses of ₹ 25 lakh to ₹ 75 lakh is expected not to revive soon because of job insecurity. However, low-income affordable housing demand (below ₹15 lakh) might see some growth because people now want to live away from slums and crowded areas because of hygiene and health reasons.

Along the lines of the changes happening in the NBFCs and HFCs, we have also shifted our focus on the relevant topics. We want our students to be able to appreciate and adapt with the changes required by the industry and be ready for all the challenges and crisis, whether predictable or not. These modules are specially programmed and changed as per the observations and suggestions of the industry and therefore, a powerful weapon to all the aspirational people who wish for guidance in these times of disruption.

New Skill Requirement: We, at IREF, have identified the need to change with the changing time and situation. We have adapted and tweaked our online construction management courses and real estate certificate course to suite the changing conditions and added courses like housing finance course and real estate valuation course. These newer modules will provide an upper edge to the learners by focusing on how the companies are overcoming the present moment of crisis.