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

05 Jul 2021 CW Team

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

Infrastructure Urban

06 Jul 2026

ABS Marine Sees CRISIL Credit Rating Upgrade

ABS Marine Services has secured an upgrade to its long term and short term credit ratings from CRISIL, reflecting improved profitability and revenue growth through long term contracts. CRISIL moved the long term rating from BBB+/Stable to A-/Stable and revised the short term rating from A2 to A2+. The action signals strengthened financial metrics and operational resilience. The company benefited from durable client relationships with firms such as ONGC and Schlumberger. The rating decision followed stronger cash flows and an enlarged bank loan facility, which increased from Rs 3,705 million (m..

Project BRAHMANK Marks 16 Years Of Strategic Roads In Arunachal

Project BRAHMANK is marking 16 years of work to establish strategic road and bridge links across Arunachal Pradesh, maintaining and developing 811 kilometres of roads and nearly 86 bridges that range from small culverts to large steel and arch bridges. These transport links are described as critical for ensuring year-round movement of defence personnel, equipment and essential supplies while improving everyday travel for people in remote villages. The project balances national security requirements with regional development by focusing on reliable access in challenging terrain. Notable enginee..

Longleng CSOs Give One Week Ultimatum Over Two-Lane Highway

Civil society organisations (CSOs) in Longleng district have demanded immediate restoration of the deteriorating Changtongya–Longleng two-lane road and sought a detailed status report on the stalled construction within one week. The demand followed a consultative meeting convened under the Phom Peoples' Council (PPC) to discuss welfare and development concerns. PPC president YB Angam Phom said prolonged non-maintenance had caused hardship to commuters and affected transportation, local commerce and the district's development. The meeting urged authorities to undertake immediate restoration a..