With numerous national and local holidays coupled with local bandhs, many questions are being raised on the smooth continuity of the realty projects.
The real estate industry has already started feeling the heat of the political agitation. Many developers who had started projects recently are worried about the current situation. With numerous national and local holidays coupled with local bandhs, many questions are being raised on the smooth continuity of the projects.
“We are very worried and helpless about the issues being raised,” said R Chalapathi Rao, vice-president, APREDA.
“If the developers have not started their projects, they can delay it to a certain extent. All the developers with ongoing projects have to struggle to deliver them on time. It took almost five years for the industry to almost get back to normal. All south Indian cities have shown immense growth within this time. For instance, Bangalore residential real estate flats prices have increased two to three times during this term. However, the city market is just about to touch the prices of 2007, acknowledged by Resindex figures by National Housing Bank.
“The political issue have serious repercussions on real estate developers. The government cannot continue to be a spectator for years and not taking a decision. If the government had already taken a decision, it would be waiting for the right time to announce it for political gains. Else, it is continuing to hold the issue fearing for Rayalseema agitation and other kind of bandhs in Coastal Andhra,” he said.
Rao pointed out that if the Centre is in favour of a separate state, the industry may suffer from human resource (labour) problems. The workers from other areas may return to their native places feeling insecure. However, if it is for a united state, these agitations may continue hindering the projects. “The industry is not in a position nor does it want to dictate terms to the government about the decision,” he said. “The only thing we seek is a peaceful environment for growth. The industry can cope with these issues to a point — beyond that, the industry will completely fail.”
Rao warned that this kind of uncertainty will not only affect the potential outside investors, who want to buy property in the City but also locals. “Anybody will buy a property if they expect appreciation in the value in future,” he explained. “Creating jobs and job security play a vital role for the growth of industry. Unfortunately both are at stake because of these issues.”
“There are around four holidays in last one week hindering the growth of not only real estate but other industries. The state and central governments have their own holidays and local leaders issuing bandhs at their own interest. All of this will not only hinder the growth of businesses but also add to economic slowdown of the country,” he said.
“Electricity problems are not only affecting other industries but also the real estate industry. Iron and other material costs have also increased adding to the raising input costs due to this power crisis. The construction industry is also suffering due to insufficient water from the bore wells due to lack of power supply,” he added.