COVID 19 the new scare word has shaken a lot of things, the real estate industry also hasn’t remain untouched by the deadly virus. Site visits and enquiries to see a dip.
By Varun Singh
COVID 19, is the new scare word in the country and the globe. Already their are predictions that it will not just kill people, but also many business.
While the impact it will have on real estate isn’t yet known, but already many in the industry are scared. COVID 19 is said to be a reason to worry even for the housing sales.
COVID 19 may result into a dip in sales enquiries as people might not step to see projects on sites.
“These are difficult times for all of us. The human race is put to test with the spread of Coronavirus. Markets around the globe are impacted with the outbreak. The real estate sector, here and elsewhere, is no different. As a result, we may see a dip in sales enquirers. However, this doesn’t mean that there will necessarily be a drop in sales. The general precaution requested and practiced by the government has been playing on the sentiments. However, the future still looks bright and we will come out of the pandemic unharmed. The sector will continue to play a leading role in making the country a safe investment region for the rest of the world in addition to domestic buyers and investors,” said Ankush Kaul, President (Sales and Marketing) – Ambience Group.
Samantak Das, Executive Director and Head of Research, REIS, JLL says, “The COVID -19 situation remains fluid and uncertainty still looms on the possible economic impact of the outbreak. Global supply chains will be disrupted in the short-term and this will undoubtedly have some impact on manufacturing in India. At this stage, the UN estimates the trade impact of the epidemic for India to be a $348 million on the external front.”
While experts are sure about the impact, but there’s no measurement of the impact of COVID 19.
“The Corona virus outbreak, which has spread over 70 countries worldwide including India, may have an impact on the Indian real estate market in a long term. However, it is difficult to measure its impact on the market for such a short period of time. Therefore, currently the realty market remains unaffected with minor impact on the investor decision timelines,” said Samir Jasuja, Founder & CEO – PropEquity.
According to Das given that the real estate sector contributes significantly to India’s economic growth, it is important to broadly analyse how the outbreak will influence this sector and it’s still premature to assess the current impact.
“We are already seeing a slump in the hotel and hospitality sector due to the cancellation of flights and closure of borders. The retail sector too will be challenged due to sourcing disruptions in the apparel, footwear and accessories space. Moreover, the slowdown is already being reflected in the delayed decisions by retailers to lease spaces. While the commercial sector has been on a strong foothold, investors and businesses will adopt a wait-and-see approach that we’re witnessing in other global markets,” added Das.
Hospitality business one of the worst sufferer of COVID 19.
According to Jaideep Dang, Managing Director- Hotels & Hospitality Group, JLL
“Business-wise, it will likely have an impact on the hospitality sector, especially on luxury hotels. Luxury chains have about 60-65% foreign travellers in their total guest composition and a large chunk of their business will potentially be impacted this season. Luxury hotel rates are also likely to decline in both quarter one and two as result. A full rebound may take time but we could see some recovery signs in the third quarter depending on the wider situation. Mid-scale brands on the other hand, derive more business from local tourists but even for those chains two quarters are going to be challenging as domestic travel restrictions come into force. Occupancies will be hit for sure but given the fluidity of this global situation, assessing the impact is a challenging proposition.”
Also Read: Indian Retail Reels Under Corona Panic