Real estate developers must lower home prices to clear unsold inventories so that buyers can get places to live at affordable prices, new CII President Uday Kotak said on Thursday.
During his first press conference as the new head of Confederation of Indian Industry (CII), Kotak said he is in agreement with Commerce and Industry Minister Piyush Goyal on the issue.
The video conference was organised by the National Real Estate Development Council (NAREDCO) where Goyal said: "You have to complete your projects before you sell because buyers will not buy under-construction projects. In my life, I will not buy an under-construction flat from anybody."
Goyal said many real estate builders have taken customers for a ride. "You will have to complete your projects, bring partners and get investors. But unless you complete your construction and sell at realistic prices, there is no other choice." Commenting on the Centre for Monitoring Indian Economy (CMIE) unemployment number of 23.5 per cent in May, Kotak said there are many sectors of the economy where job losses have been witnessed. But there are other sectors where new jobs have been created.
"We will have to focus on addressing the unemployment problem and create new job opportunities," said Kotak. He added that India has to dramatically increase spending on healthcare and education like European countries.
"Germany is handling COVID-19 very well. Germany has the best healthcare system. We spend around 1.3 per cent on healthcare while European countries' spending is in double digits," said Kotak