Friday, November 27, 2020

Second Lockdown...Then Real estate and Construction industry will collapse?

Lockdown again?
....Can Real Estate and Construction Industry will Collapse?

Now we all are suffering from this Covid 19 era. currently few days ago some situations are getting back to normal but after the festival seasons like Dasara, Diwali, Etc. COVID19 casases are increased and this is the situation of LOCDOWN again?
Now we are on the border of second wave of COVID19. and all government are ready to face it. but if it get uncontrollable need to do again lockdown to protect from second wave of COVID19.
"If government decided to do again lockdown then real estate sector will fall down rapidly" as per real estate sector in india. because from last two months the situations are getting back to normal and some sites are started, but in this situation lockdown start the real estate sector will collapse and lot of builders, developers, contractors business will stop, they will never get back. because to much investment required to start the project and from last 11 month no work is happen on site. no labours are available, material shortages, etc lot of problems are faced by builders, developers and contractor.

 After observing more positive cases in all over india. some ministers are given the statements about lockdown, but lot of shopkeeper association, manufacturer association and some construction business association, real estate business association are opposed to the decision.

As per the statement of Construction sector businessman, After first lockdown lot of labour are goes at back to home and still 30% labours are not yet coming back. as well as in first lockdown cement and steel rates are increased due to shortage of material due to this the completion time of project is laps, along with builders, developers the customer are suffered in first lockdown.

In last 3 months situation is back to normal due to unlock 1,2 and 3 step by step all the institute are geting back to normal situation bank's are giving the offers to attract the customers as well as government reduced stamp duty to get more sell and to attract more customers.
This effect are seems positive on real estate lot of customers are attracted and purchased new properties, if in this positive situation goverment decided to start second lockdown then real estate secotor situation will become worst. 


As per statement of President CREDAI NATIONAL Mr. Satish Magar, 
"COVID19 Cases are increasing rapidly, but government is also against lockdown, but if second lockdown will start then not only suffer real estate sector and construction sector but also all businesses, all manufacturer, etc will suffer and this will affect very deep on the market, and need more time to recover this."

As per statement of President of CREDAI PUNE METRO Mr. Suhas Merchant.
" Real estate sector is not a manufacturing sector like whenever start machine and get the production, within a minute.
But it has long process. Now a day's real estate sector is seems good situations, some customers are coming on site and some movements are observing in market. but if second lockdown start the sector will collapse, if Government want to COVID19 Test of labours, staff, etc. then it will work, Construction sector will help to do that."

As per statement of President of Marathi Construction Businessman Association Mr. Dnyaneshwar (Nandu) Ghate, " Currently there is still shortage of labour on site due to first lockdown, some labour are still not yet back to work and if in the second lockdown remaining labours will goes his home then situation will become very critical. due to this the project completion time will increase,  it affect the loss of extra intrest on customers, as well as builders, developers need to bear extra 
loan and interest amount. Some relaxations given by government in stamp duty, but in this situation need to control the crowd, and give some instructions, fine etc, but need to avoid Second Lockdown."


Source: Social Media