Karnataka real estate industry struggling with labour deficit, high-cost

Real estate builders in Mangaluru and Hubballi-Dharwad are facing a shortage of skilled laborers, the rising price of raw materials, and a demand slump due to the second wave of the Covid-19 pandemic resulting in lockdowns. Though the impact of the pandemic has been less in the real estate sector in Mysuru, where there is a growing interest in independent housing units. The experts tracking the property markets say that the situation may vary from one area to another. But the larger industry is going through a phase of adjustment and needs government support in clarity of rules and less regulatory pressure. As per the CMD of Allegro Ventures India, Mangaluru, D B Mehta, the industry had to adapt over the past five years because of demonetisation, GST rollout, and economic slowdown because of the Covid-19 pandemic. The year 2020-21 has been difficult because the housing demand has fallen by 50%, and value decreased by 10-15%. He said that the supply chain is severely impacted. Prices of sand, aggregates, and concrete blocks have risen sharply, and only 50% of the migrant workers have returned from their villages. Lower economic activity in the Gulf areas has affected the coastal districts. Naveen Cardoza, MD of Marian Projects Private Limited, said that new housing projects are likely to be expensive due to GST, high material costs, and an increase in statutory fees. The land and construction costs have increased by Rs 400-500 per sq ft in the last 18 months. A Mysuru resident, Rajashekhar UB, said that rents have increased by 10%. According to the builders, the biggest challenge is getting skilled laborers. Developer Divakar SP said that many skilled laborers who left the city have not yet returned. Image Source Also read: Launches subdued, affordable housing hit Also read: Affordable housing keeping Indian real estate afloat