Water Scarcity Impacts Realty Construction
With the approaching summer, water scarcity has emerged as a prominent issue. This scarcity impacts not only individuals but also various industries, including the construction sector. The current situation reveals numerous construction sites facing suspension due to water shortages.
If the prevailing conditions are challenging, the peak of summer is poised to exacerbate matters. In India, the summer season is just beginning and usually ends around June with the onset of monsoon rains. Last year's limited rainfall could mean that water shortage issues will worsen this year. Authorities have already implemented restrictions, prohibiting builders from using groundwater.
With limited water available, builders must explore alternative water sources, thereby incurring additional costs that will be passed on to property buyers and impacting property prices. Alex P Cyriac, chairman of the Builders Association of India’s Kerala Chapter, pointed out that securing water, which was previously free, now involves significant charges.
According to Mr. Cyriac, the cost of a 10,000-liter water tank has doubled from Rs. 800-Rs. 1,000 to approximately Rs. 2,000. This rise in water expenses compounds the difficulties faced by builders because they are already dealing with price increases for other raw materials. Water scarcity is most critical in urban areas, where most construction activities are concentrated, leading to substantial impacts.
Experts suggest that the main issue is not just increasing property prices with the cost of buying water, but the possible suspension of construction projects if water shortages intensify, potentially rendering many homeless.