Credai released findings of its first-ever industry survey conducted across North, East, West and South zones conducted between May 24 and June 3.
The second wave of the COVID-19 pandemic has dealt a severe blow to several sectors of the market and real estate is one of them. According to the survey by the Confederation of Real Estate Developers' Associations of India (Credai), about 95 per cent of developers fear project delays, 92 per cent are experiencing labour shortage at project sites, 83 per cent are working with less than half the workforce, and over 82 per cent of builders are facing project approval delays.
Credai released findings of its first-ever industry survey conducted across North, East, West and South zones conducted between May 24 and June 3, 2021 to assess the impact of the second wave of COVID-19 pandemic on the country's real estate sector.
“The real estate sector showed tremendous resilience in bouncing back on a cautious recovery path post the first wave, despite little relief measures. However, the second wave has prompted us to reflect and re-evaluate the growth path of the industry, and we felt it was vital to assess the challenges faced by the customers and industry partners in light of the recent developments. The findings reveal that the second wave has had a more debilitating impact on the real estate sector than the first wave,” Harsh Vardhan Patodia, President, CREDAI National said.
"Added factors such as recent spike in construction materials including steel, cement etc have contributed to more than 10% increase in construction cost for more than 88% developers. Various financial constraints and liquidity crunch are further adding to the problem, with 77% developers experiencing issues in servicing of existing loans, 85% developers facing disruptions in the planned collection, and 69% are facing issues in the disbursement of customer home loans," he added.
The survey also indicated changing consumer behaviour and shows that the second wave of the devastating COVID-19 pandemic has led to 95 per cent of homebuyers postponing their purchase decisions. They are now skeptical and uncertain, and this has led to a slowing down of demand. Nearly 98% of developers are facing reduced customer enquiries.
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 "95% customers postponed home-buying decisions amid COVID-19 second wave, shows survey")
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