Real Estate

Real estate sector in Maharashtra will take 6 months to fully recover

Radheshyam Jadhav Pune | Updated on April 16, 2020

Out of the 25,489 real estate projects registered under the Maharashtra Real Estate Regulatory Authority, 19,931 (78 per cent) remain incomplete. Developers estimate that it would take six months for the sector to resume operations in full swing.

The Government of India has issued consolidated revised guidelines regarding lockdown measures, allowing the continuation of works in construction projects, within the limits of municipal corporations and municipalities where workers are available on site and no workers are required to be brought in from outside (in situ construction).

Ashok Mohanani, Vice President, NAREDCO Maharashtra, in a press statement said: “The real estate sector, which is the largest employer of the country apart from agriculture, has come to an absolute standstill due to the lockdown. The majority of the labourers are migrants and have returned to their native places at this time. For them to return and the monsoon to pass, post which work can resume, it will take about six months.” He added that reverse migration has hit the real estate sector hard, resulting in labour shortage.

“Labourers that are available on-site can commence work by April 20 by adhering to strict social distancing measures and taking precautionary measures at work,” said Mohanani.

Rohit Gera, Managing Director, Gera Developments Pvt Ltd said: “Resumption of works is a welcome move by the government and will definitely allay the anxiety of the workers. The workers are extremely anxious and presently keen to head back to their villages as soon as the travel restrictions are lifted. As the supply chain stabilises, work should slowly start to limp back to normal; however, projects where the workers are not on the construction site will continue to face challenges to get started.”

Sujay Kalele, Founder, TRU Realty, said in a statement: “The move by the government will help the real estate industry in contributing to the recovery. At the same time, we have to strictly implement the rules to prevent our stakeholders from Covid-19.”

NAREDCO members recently had an interaction with G Kishan Reddy, Union Minister of State for Home Affairs. The immediate challenge for an industry already grappling with a challenging situation since the past few years is raising finance, and NAREDCO members have requested the Minister to take this up with concerned authorities.

Published on April 16, 2020

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