Saturday, Jan 28, 2023
English News
  • Hyderabad
  • Telangana
  • Andhra Pradesh
  • India
  • World
  • Entertainment
  • Science and Tech
  • Sport
  • Business
  • ...
    • NRI
    • View Point
    • cartoon
    • Columns
    • Reviews
    • Education Today
    • Property
    • Videos
    • Lifestyle
    • Rewind
E-Paper
  • NRI
  • View Point
  • cartoon
  • Columns
  • Reviews
  • Education Today
  • Property
  • Videos
  • Lifestyle
  • Rewind
Home | Telangana | All Is Not Well For Realty Sector Credai Survey

All is not well for realty sector: Credai survey

Hyderabad: The Covid pandemic has hit all the sectors and the real estate sector is no exception. Apart from labour shortage, delays in approvals and rising prices of construction materials, among other factors, have led to projects getting delayed. On the whole, the industry is facing numerous challenges. Confederation of Real Estate Developers Association of […]

By Telangana Today
Published Date - 12:07 AM, Fri - 11 June 21
All is not well for realty sector: Credai survey
Representational Image

Hyderabad: The Covid pandemic has hit all the sectors and the real estate sector is no exception. Apart from labour shortage, delays in approvals and rising prices of construction materials, among other factors, have led to projects getting delayed. On the whole, the industry is facing numerous challenges.

Confederation of Real Estate Developers Association of India (CREDAI) national vice-president G Ram Reddy said compared to the first wave, the second wave hit the industry hard. Though construction works are being taken up in top gear by many builders and developers, sales had not been encouraging. This apart, receivables got affected owing to the lockdown and financial constraints due to the impact on sales, he said.

“We expect things to get back to normalcy by the Dasara-Diwali season. But there are reports that a third wave is likely to hit. We are keeping our fingers crossed,” said Ram Reddy. To ascertain the position of builders’ and developers’ projects and seek their feedback and suggestions on the prevailing circumstances, CREDAI conducted a national study from May 24 to June 3, involving over 13,000 developers from across the country.

The study found that 98 per cent of the developers were facing reduced customer enquires or walk-ins, and 42 per cent were facing a drop of more than 75 per cent in customer enquiries. More importantly, 95 per cent of customers delayed their purchase decision due to the second wave.

About 92 per cent of the developers said they were facing labour shortage on their sites while 83 per cent said they were working with below 50 per cent capacity after the onset of the second wave. About 95 per cent feel their projects would be delayed due to the second wave while construction costs had gone up by more than 10 per cent for 88 per cent developers.

Not just the customers, developers too are facing financial constraints. Nearly 77 per cent of the developers who availed project finance are facing issues of servicing the existing loan while collections are not as planned for 85 per cent of the developers. About 69 per cent are facing issues in sanction and disbursement of customer home loans while almost 90 per cent feel the impact of the second wave on their business was far more intense than that of the first wave, the study revealed.

Suggestions by developers

About 78 per cent of the developers feel Stamp Duty waiver or reduction will help create demand. This apart, 75 per cent feel ITC on GST and others will improve the financial viability of projects. About 66 per cent feel loan restructuring will help in alleviating financial constraints. Single-window clearance of all project approvals will help in expediting the completion of projects, many developers felt.

Tough Times

  • 98% developers facing reduced customer enquires or walk-ins
  • 92% witnessing labour shortage, 83% working with below-50% capacity
  • 95% feel their projects will be delayed due to Covid second wave
  • Construction costs went up by more than 10% for 88% developers
  • 78% feel Stamp Duty waiver or reduction will help create demand
  • 75% say ITC on GST and others will improve financial viability of projects
  • 95% customers delayed purchase plans due to the second wave
  • 13,000 developers from across the country participated in Credai survey

Now you can get handpicked stories from Telangana Today on Telegram everyday. Click the link to subscribe.

Click to follow Telangana Today Facebook page and Twitter .


  • Follow Us :
  • Tags
  • Confederation of Real Estate Developers' Association of India
  • Covid pandemic
  • CREDAI
  • Dasara

Related News

  • New Hyundai models launched

    New Hyundai models launched

  • Fire safety better than fire fighting

    Fire safety better than fire fighting

  • Luxury carpet brand Obeetee opens store in Hyderabad

    Luxury carpet brand Obeetee opens store in Hyderabad

  • People’s Plaza in Hyderabad comes to life with 13th edition of Grand Nursey Mela

    People’s Plaza in Hyderabad comes to life with 13th edition of Grand Nursey Mela

  • Telangana Governor courts controversy again

    Telangana Governor courts controversy again

  • India’s strength lies in its youth: KTR

    India’s strength lies in its youth: KTR

Latest News

  • I work all day, then go home & play work simulator: Musk

    6 mins ago
  • Study discovers link between poor co-parenting, depression in fathers

    19 mins ago
  • Aircraft crashes in Rajasthan’s Bharatpur

    20 mins ago
  • UK mulls allowing foreign students to work for longer hours

    36 mins ago
  • Video of Kerala broiler chicken seller threatening to reveal list of debtors goes viral

    40 mins ago
  • Two IAF fighter planes crash in Madhya Pradesh’s Morena

    46 mins ago
  • Need to respect India’s diversity, says KT Rama Rao

    56 mins ago
  • India logs 93 new COVID-19 cases

    1 hour ago

company

  • Home
  • About Us
  • Contact Us

business

  • Subscribe

telangana today

  • Telangana
  • Hyderabad
  • Latest News
  • Entertainment
  • World
  • Andhra Pradesh
  • Science & Tech
  • Sport

follow us

© Copyrights 2022 TELANGANA PUBLICATIONS PVT. LTD. All rights reserved. Powered by Veegam