{"id":1695,"date":"2021-04-30T13:06:48","date_gmt":"2021-04-30T13:06:48","guid":{"rendered":"https:\/\/www.propertypistol.com\/blog\/?p=1695"},"modified":"2021-04-30T13:06:52","modified_gmt":"2021-04-30T13:06:52","slug":"covid-19-and-its-ongoing-impression-on-the-construction-industry","status":"publish","type":"post","link":"https:\/\/www.propertypistol.com\/blog\/covid-19-and-its-ongoing-impression-on-the-construction-industry\/","title":{"rendered":"Covid-19 And its ongoing impression on the construction Industry"},"content":{"rendered":"\n<p>The second wave of COVID-19 has devastated major Indian states, leaving people gasping for oxygen. Every day, hospitals and crematoriums run out of space, giving everything into the hands of fate. From major cities, this deadly second wave is now penetrating small cities, disrupting every industry in between.<\/p>\n\n\n\n<!--more-->\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter is-resized\"><img decoding=\"async\" src=\"https:\/\/www.propertypistol.com\/blog\/wp-content\/uploads\/2020\/07\/Blog-260-170-RealtyAmidCovid.png\" alt=\"PropertyPistol Blog\" class=\"wp-image-1162\" width=\"311\" height=\"203\"\/><\/figure><\/div>\n\n\n\n<p>The Indian construction industry is also witnessing the impact of COVID-19. An already crippling industry was brought to its knees when the pandemic hit India last year. With partial lockdowns, micro-containment zones, and exemption to the <a href=\"https:\/\/propertypistol.com\/\">construction industry <\/a>during the ongoing second wave of COVID-19, ICRA suggests that it is unlikely to have a material impact on the credit profiles of large companies.<\/p>\n\n\n\n<p>However, migrant workers and the construction industry are still facing challenges when India is witnessing lakhs of case reportings each day. Even after taking necessary precautions at work sites, the shortage of space for setting up labour camps are causing issues, especially for small <a href=\"https:\/\/propertypistol.com\/builder-service\">developers<\/a>. <\/p>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_69 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title \" >Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-5'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/www.propertypistol.com\/blog\/covid-19-and-its-ongoing-impression-on-the-construction-industry\/#Possibilities_of_Reverse_Migration\" title=\"Possibilities of Reverse\nMigration\">Possibilities of Reverse\nMigration<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-5'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/www.propertypistol.com\/blog\/covid-19-and-its-ongoing-impression-on-the-construction-industry\/#Impact_on_the_Construction_Industry\" title=\"Impact on the Construction\nIndustry\">Impact on the Construction\nIndustry<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-5'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/www.propertypistol.com\/blog\/covid-19-and-its-ongoing-impression-on-the-construction-industry\/#Developer_Taking_Measures_for_Situation_Betterment\" title=\"Developer Taking Measures for\nSituation Betterment\">Developer Taking Measures for\nSituation Betterment<\/a><\/li><\/ul><\/nav><\/div>\n<h5 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Possibilities_of_Reverse_Migration\"><\/span><strong>Possibilities of Reverse\nMigration<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h5>\n\n\n\n<p>Earlier this year, the sector had started witnessing recovery at the construction GVA growth of <strong>6.2% in Q3 FY2021<\/strong>. For Q4, the growth was estimated at 8.4%. Despite a steep contraction of 29.1% in H1-FY2021, the construction GVA for the entire financial year 2020-21 expected contraction merely by 10.3%. The recovery was driven by the rising pace of project executions, favorable policies, and quick clearance and approval of bills.<\/p>\n\n\n\n<p>However, the resurgence of <a href=\"https:\/\/www.propertypistol.com\/blog\/tax-sops-on-home-loans-amid-covid19\/\">COVID-19<\/a> this year is making workers reconsider their move to bigger cities of work for the mayhem it is causing. Metro cities like Delhi and Mumbai are again facing lockdowns making migrant workers leave their places of work in a semi-panic state. Since a majority of workers are planning to move back to their hometowns after seeing the deadly effects of coronavirus pandemic, it may leave the real estate in India in shackles.<\/p>\n\n\n\n<h5 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Impact_on_the_Construction_Industry\"><\/span><strong>Impact on the Construction\nIndustry<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h5>\n\n\n\n<p><a href=\"https:\/\/www.propertypistol.com\/blog\/\">Real estate in India<\/a> is the second-largest employer only preceded by agriculture. CREDAI says there are at least 20,000 projects in progress across 18,000 construction sites employing millions of people. Even if 20-30% of migrant workers leave to return to their home states, its impact on the construction industry will be significant. The shortage of workforce will only add to the challenges the industry is already facing. <\/p>\n\n\n\n<p>While\nconstruction activities have not been halted despite the deadly second wave of\ncoronavirus pandemic, a similar situation may soon arise given the extent of\ndevastation being witnessed each day. Following SOPs, paying wages on time, and\ntaking care of food, shelter, and health of workers on sites are keeping a\ncheck on reverse migration for now. But in a month or two, the prevailing\nsituations will tell if it gains or fails. Currently, the projects are moving\nat a steady pace.<\/p>\n\n\n\n<h5 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Developer_Taking_Measures_for_Situation_Betterment\"><\/span><strong>Developer Taking Measures for\nSituation Betterment<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h5>\n\n\n\n<p>After\nthe 2020 crisis, developers are taking utmost precautions to retain their\nworkforce this year and ensure they don\u2019t face challenges on living basics.\nFrequent in-situ sanitisation, vaccine awareness, regular health check-ups, and\nprovision of food and shelter are major fronts where developers are taking\ninitiatives.<\/p>\n\n\n\n<p>In fact, CREDAI announced a <a href=\"https:\/\/www.propertypistol.com\/blog\/covid-19-changes-in-the-preferences-of-prospective-homebuyers\/\">COVID-19<\/a> vaccine drive earlier this year that will benefit 2.5 crore construction workers at its developer member sites. Many developers are also offering paid vaccination leaves concerning the growing coronavirus strain this year.&nbsp;&nbsp; <\/p>\n\n\n\n<p>Even after taking in-situ measures, if the situation of people gasping for oxygen prevails, it is likely to hit every developer in the construction industry because the virus does not differentiate or negotiate.<\/p>\n\n\n\n<p style=\"font-size:12px\"><em><strong>Disclaimer:&nbsp;<\/strong>The views expressed above are for informational purposes only based on industry reports and related news stories. PropertyPistol does not guarantee the accuracy, completeness, or reliability of the information and shall not be held responsible for any action taken based on the published information<\/em>.\n\n<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The second wave of COVID-19 has devastated major Indian states, leaving people gasping for oxygen. Every day, hospitals and crematoriums run out of space, giving everything into the hands of fate. From major cities, this deadly second wave is now penetrating small cities, disrupting every industry in between.<\/p>\n","protected":false},"author":2,"featured_media":1700,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_eb_attr":"","_lmt_disableupdate":"","_lmt_disable":"","footnotes":""},"categories":[26],"tags":[62],"class_list":["post-1695","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-real-estate","tag-realty-amid-covid","entry"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v23.3 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Impact of Covid-19 second wave on the Indian construction industry and real estate - PropertyPistol Blog<\/title>\n<meta name=\"description\" content=\"Read article on, Covid-19 second wave and its ongoing impression on the construction industry and real estate at PropertyPistol Blog\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.propertypistol.com\/blog\/covid-19-and-its-ongoing-impression-on-the-construction-industry\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Impact of Covid-19 second wave on the Indian construction industry and real estate - 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