Real Estate in times of Covid-19: A new Past, Present and Future

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IFCCI organized an exclusive webinar on “Real Estate in times of Covid-19: A new Past, Present and Future” on Thursday,4th March 2021. The session opened with welcome remarks from Mr.Bruno Bronquard, Regional Director (West),IFCCI who welcomed all the speakers and participants of the event. Mr. Varun Kalsi, Partner, PSA, was the panel moderator and set up the context for the discussion which would address three time frames of pre-covid, during covid, the post-covid situation and times forward in the real estate sector. He also introduced the speakers for the day :

• Mr. Pankaj Renjhen, COO & Joint Managing Director, Anarock Retail
• Mr. Himmat Singh, India Representative - Christie’s Real Estate
• Mr. Satyen Momaya, CEO - Celio India
• Mr. Varun Gupta, Director, Ashiana Housing Limited

The discussion began with reflection upon the residential real estate sector which was stable and reviving in the pre-covid times. Following which the Due diligence practices in retail and in residential sector were deliberated upon. One of the key points discussed was the Force Majeure clause on which the speakers had different views , while in retail sector there were rental waivers and similar solutions which was a win-win situation, in the area of real-estate the contracts and projects were mostly on hold. Additionally in context of the global pandemic, how has the definition of the clause changed, change in contract drafting with regard to the Force Majeure Clause which has become more particular, were some observations made.

Further, the labour crisis, one of the most crucial issues during the Covid Lockdown was discussed as well, Mr. Varun Gupta remarked that it was economical to retain the on-site labour force rather than getting more force. Engagement on part of the Developers would have driven out the fear, mistrust and the misinformation prevailing back then. Next the changes in contract drafting since the enforcement of RERA were noted that the contracts with the customers and the landlords: their nature has changed slightly in accordance with the models given by the states. In essence new issues are being brought into negotiations and the risks and perspectives of both the developer and the landlord have changed due to Covid.

Concerning the impact of Covid on collaboration it was highlighted that post lockdown the time period and extensions on projects have changed, the owners now prefer an exchange or swap, revisiting the Post Majeure clause have been some changes . Lastly the benefits of reduced circle rate or reduced stamp duty were deliberated upon , while the former would enable transactions the latter would help increase the demand base, encourage people to spend more and help the markets. Lastly remarks on Union Budget in context of Real Estate were observed as positive and beneficial for the sector.

This was followed with the Q&A session and the closing remarks by Mr. Varun Kalsi who thanked all the speakers for their valuable insights and the participants.