The Confederation of Real Estate Developers Associations of India (Credai) and The Indian Builders’ Association stated that real estate project timelines might face disruptions due to labor shortages at construction sites. The circumstance arises because over 25% of migrant workers have returned to their hometowns. UP-Rera is cognizant of this challenge and indicated project timelines could be extended.
Impact on Housing Inventory
In the Greater Noida and Noida areas, approximately two lakh apartments stand ready for occupancy. Furthermore, as of March 25, 2020, UP-Rera has already granted developers an extension for their under-construction apartment projects.
Extended Project Deadlines Considerations
Addressing labor shortages at construction sites, both Credai and the Indian Builders’ Association, have voiced apprehensions about potential delays in delivering real estate projects. The circumstance is primarily because over 25% of migrant workers have journeyed back to their native places. As a result, UP-Rera comprehends prevalent issues and has expressed a willingness to grant project deadline extensions.
Labor Force Dynamics
Despite the resumption of work after the initial unlock, cities have struggled to recover the pre-pandemic labor force. Currently, the number of workers in the cities is around 1 lakh, significantly lower than the pre-pandemic strength of approximately four lakhs.
Credai's Perspective
Pankaj Bajaj, the president of Credai-NCR, remarked, "Material supply was once more an issue due to market closures over the weekends. Furthermore, over 25% of migrant workers have traveled back home. Consequently, daily work has become problematic. We cannot adhere to deadlines, potentially impacting the completion schedule of ongoing projects."
UP-Rera's Standpoint
Balvinder Kumar, a member of UP-Rera, mentioned, "We understand the current situation and may contemplate offering some relaxation for builders in the coming days, although no concrete decisions have been made as of yet."
Further Reading