COVID-19 pandemic hit Economies all around the world

Despite the weakness in the economy, Indian real estate sector remain stable to the some extend in the last year 2019, with lots of Govt. policy and initiatives for the revival of real estate sector and it was expected that it would bounce back in the upcoming years. But the Emergence of COVID-19 pandemic hits Economies all around the world and still, no one can predict how deep it is going to hurt the economy. For the Real Estate sector which is labour-intensive sectors, serious issues may arise. With Government support for three months, many interstate migrants may not return to work anytime soon. This will slow down the construction activities in the future and this would ultimately bring bad news for homebuyers as a shortage of labour can delay the completion of under-construction projects. The Real Estate (Regulation and Development) Act, 2016 (Rera) provides for a one-year extension in project execution timelines, in case of events beyond the promoter’s control. In case the dearth of labour is prolonged, the impact on project timelines and costs could be more severe. The recent announcements for Lockdown extension lead to fear in the mind of migrant labours and there may be a strong chance that it would result in a dearth of labour and ultimately delaying the completion of Projects. Even Post lockdown it is expected that the demand for new housing projects is going to decrease like never before as all sectors are going through a huge crisis and at the individual level, people would not like to spend their money for such investments in the near future.   Ms. Tapasi Chakraborty Chief Executive Officer ASTUTE OUTSOURCING SERVICES PRIVATE LIMITED