Builders facing dual crisis of shortage of labour and construction materials

Real Estate

Amid COVID-19 Lockdown labour shortage has emerged as one of the biggest issues for the real estate sector as the stranded labourers are waiting to return their villages despite the government has now allowed to start construction activities even in the red zones. Such a situation may result in delay in delivery of projects.

Further, to retain workers on construction sites, the developers are required to offer some incentives to them in addition to their regular wages. In view of the fast approaching monsoon season it is urgent to complete pre-monsoon works. Obviously, for this, the developers would have to give addition wages to the labourers to retain them on sites. With the government is now making arrangements for sending them back to their villages, the only way to stop mass exodus of the labourers is to incentivise them.

While a lack of sufficient labourers at sites has posed a serious challenge to the builders, shortage of construction materials is another issue hampering the construction work. Altogether this scenario will result in delay of construction which will push projects’ deliveries further. Currently the builders are also facing liquidity issues due to unavailability of buyers; hence incentivising the labourers to motivate them to stay put at sites will not be easy for them.

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