Real Estate

Real Estate Stakeholders face pressure due to the Second Wave of COVID 19

By 04/06/2021June 9th, 2021No Comments

Residents are once again subjected to partial lockdowns and a host of limitations with the second wave of COVID-19 sweeping the country. The real estate industry is facing the burden of this, as there has been an increase in the number of property deals that have been postponed. The housing market did show hints of resuscitation in the first
a quarter of 2021, but the rising trend has already come to a standstill.

Indeed, if the second wave continues to rage across the nation in the next quarters, house sales will
most certainly be curtailed, and property development plans will be abandoned or postponed.

Even during the initial lockdown, many construction workers abandoned their sites and
returned home by any measures imaginable due to the threat of being infected by the
virus, as well as a shortage of employment and inexpensive housing. It was terrible to
see about 70% of the migrant workers return to their hometowns in 2020. The real
estate business was blindsided since developers missed prior information and skills to
deal with the pandemic condition, and by the time individuals could start improvising
new methods, most migrant workers had already fled the cities. As a result, the
pandemic’s impact was particularly severe during the first wave.

In reality, due to the increase in instances in Maharashtra, the second curfew has
resulted in an outside exodus of construction personnel. Furthermore, the
worst-affected cities are Mumbai and Pune, in which the majority of real estate
construction is taking place. However, despite the overall number of active cases during
the second wave surpassed all prior statistics, the real estate scenario is not as severe
as the one in 2020, owing to the fact that no nationwide lockdown was implemented.

Furthermore, the situation is not as catastrophic as the year prior, so there is some
optimism. According to Knight Frank India, the residential housing market in India has
experienced a steady increase in both sales and launches in the first quarter of 2021.
This is a 44 percent increase over the same period the previous year. As a result,
despite the fact that the second wave is destructive, it has not impacted the property
market. As a result, even if the second wave is severe, it has not caught the real estate
industry entirely off guard, as people have learned from Lockdown 1.0.

Interestingly, just 15% of construction employees in Maharashtra have left the sites to
return home during the present lockdown. This is significantly lower than the figure for
2020, and it is not likely to rise since the authorities have supported and prepared
builders, due to a significant beneficial impact. Workers have recognized, based on their
previous experiences, that they are considerably better off in metropolitan than in their
homes and communities, where there are presently near to nil opportunities for
employment.

Builders that take preventive steps and other efforts to protect their workforce have set
the standard in the real estate industry. CREDAI (Confederation of Real Estate
Developers Association of India) has promised construction employees including not
only housing but also foodstuffs, medical support, and improved hygienic conditions.

Workers may also expect prompt medical treatment and site inspection maintenance.
CREDAI has also stated that it will deliver free vaccinations to nearly 2.5 million
construction employees on the job. As a result, testing employees for COVID—19
regularly on the job sites and providing medical segregation facilities has undoubtedly
increased the stakes involved in the real estate business.

As a result, despite the delayed pace of building due to the worrying number of covid-19
cases per day in Pune and Mumbai, the building is progressing. Ironically, this
development activity is being driven by genuine demand, as the epidemic has increased
awareness of the significance of housing. Building construction is still one of the state’s
leading employers of unskilled workers, and the demand to purchase a home has not
waned in these extraordinary times. Because two positives can only lead to another
positive, things are likely to return to normalcy as soon as the present lockdowns and
limitations are released.

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