With the increase in inflation, RBI has decided to revise the policy rates to help the people who have taken housing loans. The Reserve Bank of India has decided to extend one-time restructuring loans with a moratorium of up to 2 years is expected, providing a breathing room for stressed real estate developers and individual housing borrowers alike.

The one-time restructuring of loans, without classifying them as non-performing assets (NPAs), will be based on the KV Kamath-led expert committee's recommendation, the central bank said. The central bank of India has also declared an addition of liquidity infusions to the National Housing Board (NHB) for about Rs 5000 Crores, to provide some added relief in these tough times of crisis.

President of ASSOCHAM and NAREDCO - Niranjan Hiranandani stated that this new scheme of repayment will provide flexibility and a breather to companies, MSMEs, and individuals alike. The developers who have their projects on hold due to a lack of funds should be able to benefit from this financial change.

Chairman of ANAROCK Property Consultants said that developers who have not been able to liquidate due to COVID-19 could benefit from this change. This will infuse capital into the housing finance firms.

In the financial year 2020-2021, India's GDP will mostly be on the negative side, making it a concern for the housing sectors. Real estate majorly depends on the stability and growth of the country, for its long duration sustainability.

Due to the global pandemic caused by COVI-19, consumers were unable to go forward with their desired purchases due to the economic crisis. Real estate faced a major blow at the beginning of the year in all the 7 big cities of India, and from there, there's been a constant decline. New project launches have been declined to 46% to 60,489 units; however, as of last year, the sales were 54% to 59,538 units.