Mumbai27 minutes ago
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- The delay in the project is expected to increase the cost of the builders
- Because of this, customers will also get expensive houses.
A survey by the Real Estate Developers Association of India (CREDAI), a nationwide organization of builders, has found that 95% of the projects of builders across the country may be delayed due to the Kovid epidemic. This can also increase their cost.
Waiting for relief measures
The survey also revealed that developers want announcement of relief measures from the government and the Reserve Bank of India (RBI) to avoid further delays in project completion. The CREDAI report states that there are many reasons behind these possible delays which have been attributed to them. In this 92% of developers are facing shortage of laborers on site. 83% of developers are working with less than half the workers. More than 82% developers are facing delay in getting project approvals.
There was a lot of trouble in the first wave
CREDAI NATIONAL President Harsh Vardhan Patodia said that the real estate sector had made a decent recovery after facing several other hardships in the first wave despite some relief measures. However, the second wave has forced a re-measurement and review of the growth trajectory of the real estate industry. We felt it was important to assess the challenges faced by customers and industry partners from recent events.
second wave effect
The CREDAI Chairman said that the findings suggest that the second wave has had a more negative impact on the real estate sector than the first wave. In addition, factors such as a rise in the prices of construction materials, including steel and cement, have contributed to a more than 10% increase in construction costs for over 88% of developers.
The problem is getting worse due to constraints and lack of money.
The Covid Impact Analysis report also revealed that various financial constraints and paucity of funds are adding to the problem. 77% of developers are facing issues related to servicing of existing loans. 85% of developers are facing difficulties in collection of funds. 69% of builders are facing problem in getting home loan to the customers.
Patodia said that in view of this survey, his organization has given a representation to the government and has requested to take immediate relief work accordingly so that real estate can regain its old pace and contribute to the development of the country.