The Confederation of Real Estate Developers’ Associations of India (CREDAI) released various findings of its first-ever industry survey which was held across North, and South zones between 24th May 2021 and 3rd June 2021, to assess the effect of the second wave of COVID-19 on the real estate sector in India.
The exploratory survey conducted with a stratified sampling method, witnessed distinctive extensive participation of various 4,813 developers from 217 cities, providing an important vision on the industry sentiment and the range of challenges the real estate sector is facing.
Based on the survey report, more than 95% of developers feel the inevitable delay of projects if no urgent relief measures are injected into the sector by the Government and RBI. These delays are marked by a range of various factors, 83% of developers are working with less than half the workforce, and with 92% of developers facing a shortage of labour at sites.
Harsh Vardhan Patodia, President, CREDAI National, said, “The real estate sector marked tremendous flexibility in bouncing back on a cautious betterment path post the initial wave, despite few relief measures.
“However, the second wave of Covid-19 has caused us to re-evaluate and reflect the growth of the industry, and we felt it was important to assess the various challenges faced by the customers and the industry partners in the light of the current developments. The findings revealed that the second wave of Covid-19 has had a more debilitating effect on the real estate sector than the first wave.
Other factors such as the recent increase in construction materials including cement, steel etc have put up to more than 10% incline in the cost of construction for above 88% of developers.
Different financial restrictions and liquidity crunch are more adding to the issue, with 77% of developers experiencing problems in servicing of the existing loans, 85% developers are facing disturbances in the planned collection, and 69% are facing problems in spending for customer home loans.
The findings in a survey conducted by the apex body of the real estate developers have also put limelight on changing behaviour of consumers, resulting in decreased demand due to the decrease in enquiries and site visits.