‘83% of Goan builders, developers feel COVID-19 second wave impact is worse than first wave’

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Shoma Patnaik| NT 

Panaji

Eighty three per cent of Goan builders and developers feel that COVID-19 second wave impact is worse than the first wave due to labour shortages, reduced demand and project delays, revealed a research report prepared by the Confederation of Real Estate Developers Associations of India (CREDAI).

The all-India report released in New Delhi, on Thursday, states that nearly 40 per cent of the Goan real estate industry is working at less than 25 per cent capacity during the ongoing
pandemic crisis.

Further, housing and real estate demand in the state is at all time low with builders disclosing 75 per cent drop in enquiries from customers. 

The report says that property buyers in the state have delayed their purchases and they face a serious issue of availing home finance reflected in delays in sanctions and disbursements of
housing loans.

It discloses that 97 per cent of local builders fear that their projects will be further delayed because of late approvals. And, with residents facing a liquidity crunch, builders are not receiving  payments from customers
on time.

In an attempt to understand coronavirus impact on their sector, CREDAI brought out a research report based on survey conducted among developers during the period May 24 to June 3. 

As per the report, the second wave has again cast a shadow of uncertainty over the revival of realty industry due to lockdowns imposed in different states.

At the all-India level the report states that 90 per cent of developers feel that the impact of the second wave on their business is far more intense than the earlier wave,
83 per cent feel that they are working below 50 per cent capacity and 95 per cent say that their project will be delayed.

To support real estate developers, CREDAI has suggested stamp duty waiver, input tax
credit on GST, loan restructuring and single-window clearance for
projects.

“The rapid pace at which the virus is impacting fellow Indians has again cast a shadow of uncertainty on the economic revival,” said CREDAI, calling for a fresh stimulus package for the industry.

Goa’s real estate industry in the CREDAI study is classified among tier-2 cities. The state’s real estate market currently comprises total 698 ongoing housing projects, according to
RERA-Goa.

The local real estate industry is also the largest employer
of labour.