Covid Impact on Construction Industry

 



The pandemic had a significant impact on India's real estate sector as well as the growth of the construction industry. Every other area of the global economy did poor. The construction industry and real estate sectors have recovered more than most.

According to a report on 99 Acres.com, India's building industry growth has lost close to INR 1 billion since the pandemic began. For many real estate developers and the construction industry, there was a lack of funds.

Due to factors like loan, residential sales in India's top seven cities fell from 4lakh units in 2019–20 to 2.8lakh units in 2020–21. The entire construction industry and residential demand fell by more than 40% in the first half of FY21.

The growth of the construction industry is recovering. Not that COVID-19 is no longer a factor or that the world is free from its impact. The industry, on the other hand, has learned from the first and second waves and is better prepared to tackle the virus while continuing to conduct regular business.

One of the most key criteria of the country's real estate recovery and construction industry growth is housing sales, which have surged by 71% in India and are 90% higher than pre-COVID-19 2019 levels. A Money Life.in article claims that the Mumbai Metropolitan Region (MMR) won this competition by selling a sizable 76,400 units.

Hyderabad saw a huge 197 percent growth in sales from 8,560 units in 2020 to 25,410 units in 2021. Pune has proven to be a strong opponent, with sales increasing by 53% from 23,460 units in 2020 to 35,980 units in 2021.

But why did this increase occur during or after the pandemic that caused every business and every person on the planet to experience a financial low point? Let's look at a few impacts of Covid-19 on construction industry.

Impacts of COVID-19 on Construction Industry

·         Supply chain management

In various ways, the supply chain has been disturbed around the world. Many materials used in the construction industry are needed, due to lockdown; these products are not getting to the construction site from outside, which is slowing the construction process.

 The many materials that come from various industries inside the nation or overseas via various vehicles for the construction sector cannot come. Due to the inability of all vehicles to arrive at lockdown, the required materials are not coming, which causes the work to be delayed.

The factories that manufacture all of these supplies are also losing a lot of money because these are not being sold which has not only caused the construction industry to fall but also damaged the livelihoods of people who carry these materials by vehicle.

·         Transportation problem

Due to the nationwide shutdown, all modes of transportation have been affected. Because of this, no materials are getting to the construction industry, and no employees can commute to work from home. The work stopped as a result.

·         Labor shortage

First, the department is entirely closed down, making it impossible for workers to get to their places of work. Second, because the disease is a viral condition, employees are more likely to catch it when they come into touch.

As a result, many workers refuse to report for duty. Furthermore, it is impossible to force employees to work without any form of protection.

·         Financial problem

Due to the work stoppage, companies are not making any kind of profit; on the contrary, more losses are being incurred. Not only is the company losing money, but all of the suppliers who provide the necessary materials to various companies for use in the construction industry are also suffering major losses.

Since the company's downfall, the companies that make the materials have stopped manufacturing and the supply chain has been shut down, causing multiple losses of them. Additionally, the government is unable to properly collect taxes from these locations due to the closure of the construction industry and the non-sale of factory-produced goods, which has a direct impact on the GDP of the nation. When the GDP of the nation drops, it has an impact on the global economy.


Source Link : https://addindiagroup.com/covid-impact-on-construction-industry/

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