Categories: EXCLUSIVE INTERVIEWS

Realtors wait and watch attitude: GV Rao

Hyderabad:  Telangana Developers’ Association president GV Rao has ruled out any loss to construction sector from Covid-19 and quoted the examples of growth in IT, pharma and agriculture sectors in spite of the pandemic situation ruling roost in the state. In IT sector, the annual growth rate is 13 per cent as against 15 per cent in pharma sector. Over 50,000 jobs have been created in IT, but in pharma there is acute shortage of jobs.  However, the agriculture sector performance was impressive with production of over three crore tons of paddy in Telangana, the highest yield in the country, he said.

 

It is customary for the farmers to buy fixed assets in the name of their children when income from farm sector is very high. GV Rao said that the realtors think about developing commercial buildings only after estimating the demand for the same in the post-Covid situation in Hyderabad. There are apprehensions over the possible third and fourth waves of Corona virus. The stalemate is not yet over.  Therefore, majority of buyers have adopted a wait and watch attitude and not coming forward to buy homes. Many people are not taking out their savings out of fear of Covid. Those who have bought flats are not paying EMIs or not wishing to buy another home. Prior to the pandemic situation, the buyers used to invest their savings and also the money borrowed from others. Now, there is no such a situation, dampening the spirit of realtors to launch new projects.

 

Demand for 2 crore sft

Prior to Corona virus, the demand is for one crore sft of commercial space and two crore sft of residential space. After Covid-19, some IT units allow employees to work from home and some other units ask them to work from office. Some others want employees to be present at the office for meetings. A clear picture on demand for commercial and residential space will emerge only after the Corona leaves the shores of the country. However, the realtors estimate that 50 per cent of the total space in the market will be in demand commercially. In tune with it, the demand for villas should increase, he predicted. Lastly, he said the land value appreciated and also the cost of construction materials. There is shortage of work force. Hence, the flat rates are going to increase in future.

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