Categories: Business

Real estate developers resort to layoffs, pay cuts as Covid-19 hits sales. Kovid-19: Salary cuts due to falling sales, realty companies are retrenching employees

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Real estate developers resort to layoffs, pay cuts as Covid-19 hits sales

Mumbai. Realty companies are having to lay off staff and cut wages due to falling sales due to the Corona virus epidemic. In the coming months, in view of the possibility of slowing sales, these companies are considering various measures to reduce costs. Experts gave information about this. According to experts, the real estate sector has already struggled for the last three-four years due to blockades and delays in getting clearances arising from the implementation of new systems like demonetisation, Real Estate Regulation Act (RERA), Goods and Services Tax (GST). Used to be.

Meanwhile, the corona virus epidemic has added to the real estate sector's problems, affecting buyers' perception and sales. According to industry estimates, the real estate sector employs 60–70 lakh people, including three lakh white-collar workers. According to MyHearingClub.com and Sarkari-Naukri.com Info, about two lakh employees (including white-collar) in the real estate sector may be fired due to the corono virus crisis. He said that more than 60 thousand people have been evacuated in this area so far.

Rajesh Kumar, chief executive officer (CEO) and managing director (MD) of consulting firm PropConsilium Infratech, said, “The sector is having a major impact on sales and will directly impact the profitability of companies. There is also a possibility of default in pending payments. He said, 'Already most of the developers are facing shortage of cash and hence they are now focusing on reducing costs. They are doing layoffs for this, closing their offices. '

Rajesh Prajapati, managing director of realty company Prajapati Group, said the company was forced to cut both jobs and salaries by 15-20 percent. A report by non-broking real estate research company Lyceous Forras said that there was a loss of 8.3 percent of revenue in each month of the lockdown. The report states that by the end of June, the revenue loss in the residential real estate market will remain at 26.58 percent, which will increase to 35.07 percent by the end of July.

This post was published on June 28, 2020 11:50 pm

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