How COVID 19 pandemic impacted House Construction?
The effect of the COVID 19 pandemic has had a significant impact on the construction industry, contributing a massive portion to the country’s economic development. Due to the pandemic Covid-19, several businesses face plenty of losses. Unfortunately, the construction industry is one of them.
The impact of this is more seen especially on ongoing house construction projects where building contractors are facing labor and construction material shortages.
Due to lockdown, builders or building contractors have to restrict their work on the construction sites.
On the other side, India becomes the most affected country because of this virus. By this virus, the demand for houses or constructed houses is also impacting.
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- As the Government decides to lower the tax burden on home buyers. There are some chances that demands regarding residential space will hit.
- As per the point of view of Niranjan Hiranandani, a national president, NAREDCO, and founder and MD of Hiranandani, the popularity of real estate was immense. The short-term disruptions because of this Coronavirus is notwithstanding.
Housing affordability demand enhancing:
Due to the roll-out of Coronavirus, there is a positive impact on the portion of real estate. Some clues state that India’s residential real estate sector will become a witness of growth in sales.
- The RBI maintains the rate of repo unchanged that is 4%. Now home buyers have the opportunity to get home loans on the annum interest of 6.65%.
The scale of impact till now:
- As per the report of KPMG, this virus leaves a significant liquidity crunch for all real estate developers. The range of credit shortage is also decreased from four lakh units to 2.8 lakhs in 2020-2021. This scenario is found in the top seven cities of India.
- Apart from it, according to the report of Liaise, because of lockdown, there is an increment in the unsold inventory. This surge lies between the 15 quarters to the 19 quarters.
In addition to it, the various practical measures state that construction states were not considered as the health and safety hazard zones. Some authorities also mentioned that there is no ban on the construction site and construction work too.
Impact of digital and online mediums on the construction industry:
Due to the resumption of site activities in 2020, all the builders explore the new working criteria. This work is related to online coordination. In addition to that, it will have a low impact on the development of project designs.
As the coronavirus cases are surging, there are temporary restrictions on the work. However, over time, the construction site will face fast pace growth.
Over time, due to covid-19, construction sites are shut down. On the other hand, once the work starts, workers will surely speed up the work to a great extent. As a result, the longer projects will complete at a fast pace.
In the end, most businesses were affected because of coronavirus. However, with the ease of restrictions, work is gaining speed. Even the same thing is observed in the case of house construction. Once the situation is under control, then the work will commence on the normal page.
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