More than the issue of migrant workers wanting to return home, what is more worrying builders and real estate developers is the supply of material components for their projects.
“Majority of construction workers staying at our project sites and shelters are working. Even if 10% to 15% leave, we can manage. But it is the prices of certain components like cement that worry us. A bag of cement that used to cost ₹225 before lockdown now is priced at ₹375 to ₹400,” said Sunil Chandra Reddy and Vijay Sai of TREDA.
The real estate sector already suffered loss of 20% due to lockdown and it will be difficult to purchase cement at this price, they said. The price of ready mix concrete also will go up with this.
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The representatives of CREDAI, TREDA represented their concerns to the State government last week that the steep hike in prices of material component could slow down work and Chief Secretary Somesh Kumar assured the sector that the issue would be addressed. Sand can be obtained by applying online to the Mines Department, he said.
More than 100 industries depend on real estate sector and construction industry including cement, steel, ceramic tiles,paint etc., and their activity would be linked to construction sector and if the latter does well, it will slowly revive the economy, generate employment, said CREDAI Hyderabad president Ramakrishna Rao.
The construction industry at national level is associated with National Real Estate Development Council (NAREDCO) promoted by Ministry of Urban Housing to enable a dialogue with the industry.
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The real estate sector sought concessions for the developers as well as customers in March itself and now after lockdown impact, it became imperative.
“For developers, we requested for moratorium for two years on repayment of loans, bringing down GST slabs and interest rates on loans. For customers, GST on registration should be reduced and concession in interest on housing loans has been sought,” said Mr. Vijay Sai.
The real estate sector is confident that customers who booked their apartments or planning to buy before lockdown will not go back on their decision. “Hyderabad is basically end-user market with affordable prices compared to other metros. In Chennai, the range is up to ₹24,000 per sft. In Hyderabad in the West zone, it is in the range of ₹6,000 to ₹11,000 per sft and in other areas between ₹4,000 to ₹6,000 per sft,” he said.