NE BUSINESS BUREAU
AHMEDABAD, JUNE 30
The coronavirus pandemic has had a wreck impact on the operation of the real estate sector as well as other sectors of the Indian economy. All works in the construction sector came to a complete halt when the lockdown was announced across the country and shortly after, the reverse migration has commenced as there was a modest waiver given in the lockdown norms. Now, there is an acute shortage of workers in the real estate sector in Gujarat and especially in Ahmedabad.
Commenting on this condition, Gagan Goswami, Founder & Managing Director – Heritage Infraspace Pvt. Ltd. said, “Most of the construction activities used to slow down during the monsoon season. In this Modern Age, the use of new technology has also reduced the dependency on the workers. At present, the projects are not being carried out in full capacity. Once the workers return, the operations will pick up the momentum. On the other hand, the Central Government has announced various relief packages and incentives to boost the real estate sector, the positive effects of which will be expected to be felt in the next three to six months. In the coming festive season, the real estate sector will see new demand for homes, but the possibility of a revaluation cannot be ruled out owing to the prevailing economic situation.”
Recently, Finance Minister Nirmala Sitaraman has extended the deadline for the entire real estate projects by six months, calling the Coronavirus is an unavoidable disaster under the Real Estate Regulation and Development Act (RERA). Under the new provision, each state and union territory has been directed to consider COVID-19 as a natural disaster. This move by the government has given a lot of relief to the builders and they will be able to complete their ongoing projects in this extension period.
