Stark Realty Why Ncr Builders Are Struggling To Reboot

Shortage of labour due to reverse migration, pressure from customers, lack of govt support are huge challenges

- Abhishek Anand in Noida & Kausar Firdausi

The prolonged lockdown has left the real estate sector in Delhi-NCR gasping. Construction work had come to a grinding halt and the workers left for their homes. Now, even as the Union government has allowed in situ (at the original place) work at construction sites this week, builders are unable to restart the engine.

As things stand, more than 68,000 houses that were to be delivered to homebuyers in 2020 in the National Capital Region are unlikely to be completed in time due to the halt in construction activity and absence of workers, developers and real estate consultants told Mail Today.

Of the 15 lakh units spread across the top eight metro cities in India, the share of Delhi-NCR is 4.25 lakh (27%), said a recent report by real estate portal 99acres.com.

“This situation has severely impacted our cash flows and sales. Thankfully, the government has now allowed in situ site work and we are hoping this will remedy the issues to an extent,” said Prashant Solomon, Managing Director, Chintels India and Treasurer of the NCR chapter of CREDAI, an apex body of private real estate developers. “There is only one surefire way we could handle the lockdown and the ensuing disruption – by preserving cash and reducing costs,” he said.

The sector is already feeling the pinch. RK Arora, chairman Supertech Limited and president National Real Estate Development Council (Naredco), put the loss the real estate sector faced across the country during the lockdown at about Rs 5,000 crore. “The government must help the realtors. It can dispose of all pending issues that are halting the projects and also, a reduction in home loan rates will attract buyers,” suggests Arora.