virus covid-19 economy crisis

Covid impact: Capital, labour crunch stall restarting of realty projects

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BENGALURU : Construction of a large number of real estate projects across cities has not restarted even after lockdown restrictions were lifted due to a severe liquidity and labour shortage that developers are facing.While the labour shortage may be resolved in the coming months, the capital shortage is likely to linger much longer, that may induce a spiral effect leading to delay in possession of homes, cash flow issues and significant rise in cost of capital.The covid-19 crisis may have wreaked havoc on most businesses and the overall economy, but impact on the real estate sector, which was already facing a prolonged slowdown, has been particularly harsh.“Besides labour and cash shortage, there is a third factor, which is the lack of.

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