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With inflation snapping at its heels, the real estate sector is looking for faster construction approvals.
Why: Demand for homes has gone up after the pandemic’s third wave and pretty soon, new housing inventory will become critical for a builder's revenue and profitability.
What’s happening?
Housing demand has increased by roughly 4.6% ( QoQ) and 6.7% (YoY) in Q1, 2022. Conversely, gross values for construction output have plunged by 5.5% amidst a backdrop of fast-reducing inventory and steady demand.
Leading real estate developers are now calling for ease of doing business through quicker approvals. This is but natural, considering high demand alongside record-high inflation.
Why faster approvals are necessary
✅ Real estate only contributes to the GDP once new construction is underway.
✅ Higher input costs may be counter-balanced by Government measures in the near future.
✅ Faster approvals to enable developers to keep meeting demand in the interim.