Assam’s Real Estate Suffers Losses worth 2,000 Cr
As Assam goes into the Unlock mode, the state’s real estate sector awaits a pick-up in demand as they stare at losses to the tune of around Rs 2,000 crore.
A government-sponsored study to assess and understand the severity of the impact of the pandemic on the state’s economy had predicted that “a lack of effective demand in the housing sector would lead to crisis and completed units will remain unsold”.
The “Report on Economy of Assam”, commissioned by State Innovation and Transformation Aayog (SITA) in collaboration with Omeo Kumar Das Institute of Social Change and Development, said real estate developers procure raw materials on credit and with a fall in demand, the crisis will spill over to the input supply chains.
Taking into account the projected population of Assam in 2020 and data of Periodic Labour Force Survey of India 2017-18, construction workers constitute 9.9% of the workforce in Assam (rural 10.2 percent and urban 7.7 percent). There are presently 7.8 lakh construction workers in rural areas and 5.9 lakh in urban areas.
“Loss of livelihood for more than a month in this sector has brought in a serious crisis. In addition to construction workers, about 9,500 people are involved in allied real estate activities,” the SITA report read.
The demand of houses and sales have definitely dwindled due to significant job loss or reduction in income in the private sector. Although demand is there, affordability and financial insecurity are huge concerns. Sale of premium houses and flats have been affected the most.