Pandemic-induced slowdown returns to haunt realty sector | Visakhapatnam News -

Pandemic-induced slowdown returns to haunt realty sector | Visakhapatnam News

Visakhapatnam: The second wave of Covid-19 may lead to a downward revision in ratings of real estate projects in Andhra Pradesh due to delays and other issues. The developers are facing shortages and logistical problems with transporting construction material to sites as well as problems with labour. There may also be bottlenecks caused by drops in the production and transportation of the construction materials.
The real estate sector, which was slowly returning to normalcy after the effects of the first wave of Covid-19, is again facing challenges during the second wave of the pandemic in cities like Vizag and Vijayawada.
Speaking to TOI, B Raja Srinivas, president of Confederation of Real Estate Developers Associations of India (CREDAI), Andhra Pradesh, said that the real estate sector in Andhra Pradesh has been depending on the northern states for construction materials such as tiles, electrical equipment, pipes and other materials for years. “The second wave of the pandemic may hit production of construction material as well as transport of the material. We are anticipating that real estate projects will be delayed in the state,” he said.
“We have been facing at least 20%-30% shortage of skilled workers in the construction sector for the past one year. At present, the workers are not in a mood to return from their home states, but the delay in getting the construction material from other states may hit at least 30%-40% of the real estate projects in the state,” Srinivas added.
“We are hoping that demand may recover faster for affordable housing and mid-price homes in cities like Vizag and Vijayawada in the coming days as remote working has encouraged people to buy houses in their hometowns,” said B Sunil, a real estate developer. Housing demand is likely to return to 2019 levels but only if the impact of the second wave is not prolonged, he added.

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