It’s never say die
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Despite the lull in realty sector, builders look up to the future government with hope, writes T. Lalith Singh
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Natural phenomenon: The faith in sunrise after every eclipse is what makes the real estate industry tick.
With curtains down for a hectic political season that culminated in electorate freezing their preferences this week, real estate in the city now clamours for the focus that it has lost with a series of setbacks in the last few months.
The construction industry went into a tizzy in the wake of economic slowdown and was dealt a further blow with delays in mega infrastructure projects such as outer ring road and expressway and finally the Maytas episode and its fallout hanging an interrogation mark on Metro Rail project.
Sales dropped drastically, construction work got affected with many projects going on hold and a general disinterest creeping in real estate investments. The election too contributed in the slowdown amid talks that politicians and also aspirants of a political career who have invested in the real estate withdrew their money for the purpose of joining the fray.
Temporary brakes
Builders also concede that elections and possibility of subsequent change in government usually results in applying brakes for the construction industry. As one explains, the industry does wait for clarity on mega projects to approach of a new government towards the industry and its policy on land. The prices come down slightly and buyers too adopt a wait-and-watch policy.
Telangana statehood
Unlike last polls, there seem to be more clarity on the contentious issue of a separate Telangana which will help the industry stage a comeback that much faster, points out another. In last elections and subsequent by-elections which went on the T-factor as major plank did make property prices in the city suffer while hiking them up in other places.
Broadly, the construction industry accepts that there has not been any major construction progress or major launch of new projects happening in the last few months. “There is a certainty and we are sure that the work will pick up in next couple of months once the government is in place,” says a builder. However, it is conceded that, as of now, the fortunes of real estate are intricately twined with that of the IT industry. The boom witnessed in last few years was due to the young software professionals with big salary packets and only if they do not have to worry about their jobs, Elections are over and the new government will be in place in a month’s time. That’s when the push to the real estate could be happening is the hope.
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