“The SBI finances nearly 150 projects, including 15 sanctioned after the second wave of COVID”
Real estate activity experienced a drastic drop during the first wave of COVID-19. But it started to recover from February of this year, but suffered a setback again from April with the start of the second wave. But now it is gaining momentum and business is getting back on track, said Manmaya Pandab, deputy managing director of the State Bank of India.
He was speaking to the media here on Saturday, after launching the poster and brochure for the seventh edition of the real estate exhibition organized by the Confederation of Real Estate Developers’ Associations of India (CREDAI). The real estate exhibition will be held this time from December 24 to 26 at the Gadiraju Palace and Convention Center, Beach Road.
According to Mr Pandab, the signs of improvement are encouraging and in the coming months they should rebound. “Right now, Visakhapatnam is experiencing real estate growth in regions such as Pendurthi, Lankelapalem, Atchutapuram and Madhurwada, and we are not only financing projects, but also the leading banker in the mortgage segment. ” he said.
According to Pandab, the SBI is funding nearly 150 projects, including around 15 that were sanctioned after the second wave of COVID-19. Funding ranges from a few crores to projects as large as 45 crore, he said.
But despite signs of improvement, CREDAI officials say the company’s profitability is declining day by day, with the cost of materials rising sharply.
The cost of steel has fallen from 35,000 per tonne to 65,000 in recent months and the cost of cement per bag has increased by 40 in the past two days. “But at the same time, we were not able to increase the selling price,” said B. Srinivasa Rao, president of CREDAI.
According to CREDAI President KSRK Raju, overall there has been a 35-40% increase in the cost of equipment. He said business was improving and demand for a gated community was increasing from domestic customers and NRIs.
Speaking of the real estate fair, CREDAI members stressed that there will be no entrance fees and that around 120 booths will be set up.
“We will have real estate agents, builders, decorators and bankers who will set up their stands at the show,” Srinivasa Rao said.