Karnataka: Second wave causes a huge loss to real estate industry

31 May 2021 CW Team

The sale of flats or lands or independent houses is not happening, though construction works are still under progress. The industry was expecting a good amount of business in April-May, which did not happen because of the lockdown.

Naveen Cardosa, the former president of CREDAI Mangaluru chapter and the managing director of Marian Projects Private Limited, told the media that after the first wave, people started investing, and there was renewed hope. However, due to the second wave taking place currently, everyone is worried about the infection. He also said that they are expecting the industry to recover by the end of the year.

He noted that the investments in the new projects might not happen for the time being as it would cost 15% more. Additionally, he pointed out that the cost of construction materials and GST has increased and that the investments in new projects in the current situation could be risky.

Vivek D'Mello, Real Estate Consultant, told the media that it is a good time for the buyers as they can negotiate due to distress selling. The distress sales are also expected to rise. However, he warned that buyers would need to find the right properties, and there is no speculative buying like before.

A contractor, Karthik Salian, told the media that he is finding it challenging to arrange labourers as the majority of the migrant workers who are the backbone of the construction industry have gone back home. Because of this, there is a shortage of manpower, and they have to invest more to arrange for the labourers.

Image Source

Also read: Karnataka approves projects worth Rs 13k cr amid Covid-19 second wave

Also read: Property registrations across Karnataka halted as state announces lockdown

"Join industry leaders at RAHSTA Expo, India's premier platform for roads, highways and traffic infrastructure. Register now to explore innovations, network with experts and shape the future of mobility."

The Real Estate business in coastal Karnataka is hit with another jolt because of the second wave of the pandemic, which was making a slow recovery earlier this year. The industry started to recover only in January after last year's lockdown. The Industry experts predict a much slower recovery compared to the first wave. The sale of flats or lands or independent houses is not happening, though construction works are still under progress. The industry was expecting a good amount of business in April-May, which did not happen because of the lockdown. Naveen Cardosa, the former president of CREDAI Mangaluru chapter and the managing director of Marian Projects Private Limited, told the media that after the first wave, people started investing, and there was renewed hope. However, due to the second wave taking place currently, everyone is worried about the infection. He also said that they are expecting the industry to recover by the end of the year. He noted that the investments in the new projects might not happen for the time being as it would cost 15% more. Additionally, he pointed out that the cost of construction materials and GST has increased and that the investments in new projects in the current situation could be risky. Vivek D'Mello, Real Estate Consultant, told the media that it is a good time for the buyers as they can negotiate due to distress selling. The distress sales are also expected to rise. However, he warned that buyers would need to find the right properties, and there is no speculative buying like before. A contractor, Karthik Salian, told the media that he is finding it challenging to arrange labourers as the majority of the migrant workers who are the backbone of the construction industry have gone back home. Because of this, there is a shortage of manpower, and they have to invest more to arrange for the labourers. Image Source Also read: Karnataka approves projects worth Rs 13k cr amid Covid-19 second wave Also read: Property registrations across Karnataka halted as state announces lockdown

Real Estate

29 Jun 2026

Omaxe to Invest Rs 62 Billion in Hospitality Expansion

Omaxe has announced the launch of a dedicated hospitality business vertical with plans to develop 19 hotels across five states over the next four to five years as part of its strategy to strengthen recurring revenues and expand its integrated development ecosystem.The real estate developer proposes to invest approximately Rs 62 billion, subject to regulatory approvals and market conditions, to develop nearly 5 million sq ft of hospitality assets across high-growth urban centres, pilgrimage destinations and transit corridors.The proposed portfolio will be integrated with Omaxe's existing townsh..

Infrastructure Transport

29 Jun 2026

Third Railway Line Between Tatanagar And Adityapur Likely By September

The third railway line between Tatanagar and Adityapur is expected to be commissioned by September as work on the corridor advances, according to railway sources. The project to add a fourth line on the busy route is progressing and has been allocated Rs 50.89 billion (bn) in funding. The allocation underscores the focus on increasing capacity and easing congestion on the corridor. Relevant timetables are being adjusted to integrate the new capacity into regular operations. Construction activity has involved track laying, formation work and signalling upgrades along strategic stretches, with m..

Infrastructure Transport

29 Jun 2026

Indian Railways Approves Rs 2.7 bn Kavach Rollout in Odisha

Indian Railways has approved a Rs 2.7 billion (Rs 2.7 bn) plan to install the Kavach train collision avoidance system on 631 route kilometres in the East Coast Railway zone. The Ministry of Railways said the work will form part of a wider Kavach deployment programme that relies on an LTE based communication backbone rather than a standalone installation. The approval marks the latest stage in the steady expansion of the indigenous safety technology across the national network. The decision aims to enhance safety and reliability on corridors serving Odisha and adjoining areas. The project will ..