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

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

Infrastructure Transport

06 Feb 2026

Lucknow Metro East-West Corridor Consultancy Contract Awarded

The Uttar Pradesh Metro Rail Corporation has awarded the first construction-related consultancy contract for the Lucknow Metro East West Corridor to a joint venture of AYESA Ingenieria Arquitectura SAU and AYESA India Pvt Ltd. The firm was declared the lowest bidder for the Detailed Design Consultant contract for Lucknow Metro Line-2 under Phase 1B and the contract was recommended following the financial bid. The contract is valued at Rs 159.0 million (mn), covering design services for the corridor. Lucknow Metro Line-2 envisages the construction of an 11.165 kilometre corridor connecting Cha..

Infrastructure Urban

06 Feb 2026

Div Com Kashmir Urges Fast Tracking Of Jhelum Water Transport Project

The Divisional Commissioner of Kashmir has called for the fast-tracking of the Jhelum water transport project, urging district administrations and relevant agencies to accelerate planning and clearances. In a meeting convened at the divisional headquarters, the commissioner instructed officials from irrigation, public health engineering and municipal departments to prioritise the project and coordinate survey and design work. The directive emphasised removal of administrative bottlenecks and close monitoring to ensure timely mobilisation of resources and contractors. Officials were told to in..

Infrastructure Urban

06 Feb 2026

Interarch Reports Strong Q3 And Nine Month Results

Interarch Building Solutions Limited reported unaudited results for the third quarter and nine months ended 31 December 2025, recording strong revenue growth driven by execution and a robust order book. Net revenue for the third quarter rose by 43.7 per cent to Rs 5.225 billion (bn), compared with Rs 3.636 bn a year earlier, reflecting heightened demand in pre-engineered building projects. The company’s total order book as at 31 January 2026 stood at Rs 16.85 bn, supporting near-term visibility. EBITDA excluding other income for the quarter increased by 43.2 per cent to Rs 503 million (mn),..