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

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

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

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

Next Story
Real Estate

Heena Lalwani Buys Rs 1.13 Billion Juhu Apartment

Heena Lalwani, promoter of Aatman Innovations Private Limited, has purchased a luxury apartment worth Rs 1.13 billion in Mumbai’s upscale Juhu locality, according to property registration documents accessed by Zapkey.com.The 9,862 sq ft apartment, located on the 10th floor of Lodha Developers’ Avalon Tower, was acquired at Rs 115,000 per sq ft and comes with five car parking spaces. The deal, registered on 18 August 2025, also included the payment of Rs 68 million in stamp duty and a Rs 30,000 registration fee.Lodha Developers did not respond to queries regarding the transaction, while the..

Next Story
Real Estate

Godrej Buys KPHB Land for Rs 7 Billion in E-Auction

An acre of prime land in Kukatpally Housing Board (KPHB), Hyderabad, was auctioned for Rs 7 billion, with the Telangana Housing Board generating Rs 5.47 billion from the sale of 7.8 acres through e-auction on 20 August 2025.The auction notification was issued last month, attracting bids from Godrej Properties, Aurobindo Realty, Prestige Estates, and Ashoka Builders, according to Board vice-chairman V.P. Gautham. With an offset price of Rs 4 billion per acre, the three-hour auction saw 46 bid increases, before Godrej Properties acquired the land.Revenue generated from the auction will be utilis..

Next Story
Real Estate

HMDA to Auction 93 Prime Plots in September

The Hyderabad Metropolitan Development Authority (HMDA) is preparing to conduct a three-day auction of prime open plots across Hyderabad, Rangareddy, and Medchal-Malkajgiri districts this September.According to official reports, the e-auction will take place on 17, 18, and 19 September, offering 93 plots. Of these, 70 are located in the Bachupally HMDA layout, with the remainder spread across Turkayamjal, Kokapet, Poppalguda, Chandanagar, Bairagiguda, Gandi Maisamma, Suraram, Medipally, and Bachupally village.The highest upset price has been fixed at Rs 175,000 per square yard for a land parce..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Talk to us?