Mangaluru: Builders in Mangaluru and Hubballi-Dharwad wrestle with the lack of skilled workers, rising raw material costs and deterioration of requests, challenges triggered by the second wave of Covid and locking produced.
But the impact was less severe in the real estate sector in Mysuru, where there were interest in independent housing units.
Experts track the property market say the situation can vary from one region to another, but the larger industry will go through the adjustment period and need government support in terms of clarity in less regulatory rules and pressures.
According to DB Mehta, CMD from Allegro Ventures India in Mangaluru, this industry must continue to adapt for the past five years due to major events, from demonetization, the launch of the GST economy and economic slowdown with a pandemic.
Last year, 2020-21, very difficult: demand for housing collapsed with 50 percent and a value of 10 to 15 percent.
“The supply side has been very affected.
The price of sand, aggregate and concrete blocks rose sharply and only 50 percent of migrant construction workers had returned from their village,” he added.
Lower economic activities in the Gulf countries also affect the market in coastal districts, especially Dakshina Kannada.
Nris formed a large group of property investors.
Naveen Cardoza, MD from Marian Projects Pvt Ltd, said new projects tend to be expensive because developers must take into account GST costs, high material costs and a legal cost increase.
Land and construction costs have increased by Rs 400-500 per square in the last 18 months.
In Dharwad, property sales have slowed in all segments – low, medium and high income groups and luxury categories.
Builder Ravi N Deshpande claimed that new projects were not announced because of the limitation of the government height for high approval and delayed by the Rera real estate regulator.
“People who want financing do not get it from the bank to want the registration of Rera,” he added.
Another Builder in Dharwad said that there must be one window to get permission.
“At present, we must approach 17 departments to get permission for high gains.
We pay high fees and a large fine for small violations.
Even after having everything correctly, the certificate of settlement takes a minimum of six months, “he said.
In Mysuru, everything is a little better.
Although the prices of sites and apartments have stagnated for the past year and slow construction rates, various infrastructure and investment proposals have made developers optimistic .
Nagesh ML, CEO of Amacs India, said the trend moved from only money parking in real estate to have a ready to build site.
“Rentals have increased by 10 percent.
The best choice is to build your own home, “said Rajashekhar UB, a resident of Mysuru.
The builder said the biggest challenge was to get a skilled workforce.” Many skilled employees who leave the city have not returned, “said the developer Divakak SP.
Real estate industry in Karnataka faces labor crisis, high costs
