No turnaround in sight for real estate sector

SHOMA PATNAIK | NT
Panaji
Players in the state’s real estate sector, which has been hit by the slump, do not see any hope of revival in 2020.
Local builders told ‘The Navhind Times’ that they expect the industry downturn to continue in the current year as sales are moving slowly and the number of unsold flats is rising.
“The sale is happening but only in pockets and in segments such as holiday homes and affordable housing in the Rs 40 lakh range. A few new projects are being launched in the state, and builders are looking at projects with a clear future such as re-development of housing societies that are over 50-60 years old,” explained builder Kulasekhar Kantipudi.
He added that sales are need-based and come only from homebuyers who look to occupy and live in.
Cedric Dias of the Vasco-based Prime Builders reckoned that the recession in the housing industry will get worse this year as builders get slapped with new compliances.
New compliances will delay construction projects, Dias said, adding that home bookings are slow at current housing rates.
The state has 500 ongoing housing projects in various stages of completion, according to the Goa Real Estate Regulatory Authority. Inquiries have revealed that housing rates have not dropped but the price is negotiable and builders are offering freebies such as free furniture, kitchen cabinets, etc. The builders are also offering better amenities
such as swimming pool, gym, children’s park to improve the quality of construction.
The builders said the slump in the real estate sector is linked to the slowing economy.
“Thanks to the slowdown, there are financial problems in the economy. The biggest component of our industry is finance, and we are facing working capital crunch,” pointed out a developer.
To revive the real estate industry, the central government recently announced Rs 25,000 crore window to fund stalled housing projects. The investment fund is to revive incomplete projects and provide relief to homebuyers.
However, the Goan builders said the investment package will not make any impact on the state’s housing industry as it is meant for mega housing projects in metro cities.
Unlike the metro cities which are in throes of huge excess capacity due to a spate of new constructions, the Goan
housing sector is relatively better off as there is no sharp drop in property rates, according to the developers.

Source:: The Navhind Times

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