For the next two weekends, you will not get to see any of the full page real estate advertisements in most papers. And that’s because developers nationwide are not just going on a strike, but they have also decided to pull back all media activity.
According to Ernst & Young, in 2011 the real estate industry nationwide spend over Rs 2,200 crore on print advertising alone, which works out to over Rs 42 crore a week! In Mumbai, the figure for 2011 was Rs 361 crore, which is about Rs 7 crore a week!
And that’s not all. The MCHI has also asked over 250 businesses associated with construction and real estate, for example, brokers, raw material distributors and others, to hold back their business over the next two weekends.
Speaking to Bloomberg UTV, the management of the MCHI said that several other industries rely on real estate, and the slowdown affecting the sector is affecting these as well. The MCHI is trying to get the government to notice the woes covering the sector through various tactics, including a planned silent protest – the date of which is likely to be announced on the April 30.
The sector has been plagued with rising input costs and cautious demand – however, sentiment seems to have improved over the last month or so, with a nominal uptick in sales volumes.