Andhra Pradesh

Second Covid wave impacted construction sector more, says CREDAI-Tirupati

TIRUPATI: Uncertainty looms in the construction sector as the second spell of coronavirus continues to wreak havoc. The sector has seen a 50 per cent decline in the activity in the temple town of Tirupati in the second wave, according to CREDAI-Tirupati. Though builders didn’t suffer huge losses they admitted that the delay in construction works has increased the compound interest rates, the body said.

Confederation of Real Estate Developers’ Associations of India-Tirupati president TS Rajasekhar Gupta said the second wave has impacted the sector more. “The first wave of Covid didn’t impede the construction sector completely. Last year, many migrants stayed due to lack of transport and travel restrictions.”“The intensity of the second wave has forced a majority of the workers to go back.”

January-March months are an active period for real estate as apartment sales usually go up. Also, investment into the sector sees an increase as it is the last quarter of the financial year. The sales, however, go down between April and August, and pick up again after Diwali. “This year, owing to the pandemic, there were zero enquiries regarding apartment sales from the buyers. The second half of the year seems bleak with the possibility of a third wave in September,” Gupta added.

According to him, building violations caused more losses to the sector than the pandemic itself. “Many builders got permission for a few units, but constructed more apartments, causing a loss of revenue to the state government.”