The government announced a new set of guidelines on Wednesday as India entered the second phase of a nationwide lockdown that was intended to curb the spread of the novel coronavirus.

Government Guidelines on Construction Restart

The Government, on April 15, providing some relief to the construction industry, released guidelines for lockdown 2.0, enabling some construction activity at non-COVID-19 hotspots starting April 20. This is only offered with strict social distancing guidelines, and construction workers are available locally on the site. Real estate experts said construction restart would send a positive message to both developers and homebuyers. It would ensure stable cash flows for projects near completion and unlock future investment opportunities.

Also, the well-funded projects that would see rapid building activity after the lifting of the lockdown. Developers will look to start projects already near to completion to produce positive cash flows. Despite the current situation, the push to start at least some construction activity on project sites is permitted even with the minimal workforce.  As for construction activities in non-hotspots, developers may need to concentrate on restarting work on projects that are already close to completion and have a completion deadline by 2020. 

The new guidelines also allowed the transportation of goods without distinction of essential or non-essential. This means developers would be able to procure raw material to resume work. There will be considerable interest from current purchasers following the lockdown. Just a conditional and restricted restart of construction will provide some relief, help eliminate another six-month delay and ensure losses are reduced by 30 to 40%.

Maintenance of Social Distance in Real Estate Industry 

Under the new guidelines, contractors and developers will need to ensure that social distancing is maintained at the sites, routinely sanitize sites and also provide laborers with masks, soap, and sanitizers for washing hands. That will certainly change the rules of the real estate sector. The focus of developments going forward, assuming construction activity will be allowed to restart, would be on three ‘S’-  screening, sanitation, and sanitization of laborers, labor camps, and construction sites. A graded strategy is a key to success in implementing consistency through construction sites. 

It is expected that some more activities with reasonable protections should be permitted once the Central Government takes a final decision on the extension of the lockdown. As a result, the real estate sector will see a revival soon with maintaining safety protocols.

BY: Shailaja K