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Covid strikes real blow to Real Estate Projects
- Over `300 crore projects unsold
- Real estate experts hope that Diwali season will revive the industry.
Bengaluru: The impact of the novel coronavirus on Bengaluru real estate had been unprecedented. The pandemic has brought the entire construction activity to a grinding halt. Due to the pandemic Rs 750 crore worth projects across the state and more than Rs 300 plus crore worth projects in Bengaluru remained unsold, a recent survey showed.
Real estate experts hope that Diwali season will revive the industry.
State unit of the Federation of Indian Real Estate Developers Associations (KREDAI Karnataka) said about 40 percent of housing projects were sold in 2019 and the goal was to sell 50-60 per cent by 2020. In the first quarter of 2020, 1.25 lakh sq. ft. housing space were sold in Bengaluru and Mysuru.
"The first quarter of 2020 (January to March), there was high demand as the central government cut its GST tariffs on realty. We expected demand throughout the year, but the projects came to a halt due to the lockdown. However, the realty sector is slowly recovering after the lockdown," Suresh Hari, president of Bengaluru KREDAI said. According to reports, real estate activity in Bengaluru is slowly picking as the central government relaxed the Covid-19 regulations.
Various construction and building related works have picked up. Over 2,000 housing projects started in Bengaluru, Mysuru and Mangalore. Private real-estate companies have resumed layout works. Around 65 percent of the workforce related to the construction industry have resumed work post relaxation of the lockdown regulations.
"The construction work is still to pick up because of the monsoon. Only after Diwali, the pace of work can be accelerated and 100 per cent work could start only in December," State unit president of KREDAI, Kishore Jain said.