industry

Realtors see construction continuity benefit outweigh Maharashtra restrictions' impact on April sales


The momentum in property sales in Maharashtra is likely to slow down in April as the state government has prohibited movement of people without a valid reason for 15 days while implementing section 144 from Wednesday evening. However, the benefit of continuity in construction activity allowed by the state, developers believe, is expected to outweigh the impact on sales.

The state government has allowed construction activity with the condition that developers will be managing workers on site with their food, accommodation, medication and no unnecessary movements.

According to realty developers, the loss of sales for these 15 days can be recovered later and the permission to carry on construction activity will help them in holding the workers back and avoid reverse migration.

“The permission to allow construction work will not only help us in timely completion of projects, but also in avoiding the repeat of last year’s exodus. Sales may get impacted for the next 15 days, but that can be recovered as soon as the restrictions are lifted. Based on our learnings from last year, many developers have shifted most part of the sales process digitally and that would help us in keeping the customer engaged,” said Rajesh Prajapati, managing committee member of realty developers’ body CREDAI-MCHI.

Developers seem to have factored in the sluggish sales activity for this period but are relieved that the construction work has been allowed to be carried out during the period of the clampdown.

“Homebuyers may defer their decisions for two weeks. However, allowing construction activity will help developers in retaining migrant workers back and avoid project delays. With this, the government has also ensured there is no repeat of last year’s chaos related to reverse migration,” said Harish Jain, vice president, Brihanmumbai Developers Association (BDA).

Developers are already taking care of labourers’ food and accommodation at the site itself apart from free regular testing, vaccination, the assurance of medication, work and wages even if the worker gets infected.

The government has also announced financial support of Rs 1,500 for around 12 lakh construction workers registered with the state authorities.



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