Covid 19 has had a severe impact on the real estate in MMR. MMR has witnessed a rise in cancellations of home booking by 200% says a report released by developers body CREDAI-MCHI.
By Varun Singh
Covid 19 has impacted almost all sectors, but real estate sector is the worst hit. A report released by apex developers body CREDAI-MCHI has thrown several worrying figures.
The report titled ‘COVID 19 Impact: Real Estate’, was conducted via a survey and research of over 100 leading Mumbai Metropolitan Region developer builders as well as various real estate experts and professionals.
According to the report residential bookings have fallen by 78% (A Month, from February 2020 last week to March third week) as compared to January 2020.
There’s also a 250% drop in home loan collection in March 2020 as compared to January 2020.
Due to Covid 19 and the following lockdown, a total Number of Walk-ins dropped by almost 80% in a span of 30 days.
7,766 confirmed scheduled site visits were cancelled due to COVID – 19 in a span of 30 days of the study.
While there was a 200% rise in cancellations in the third week of the study, the trend normalized to average figures in the last week of the study.
The report states that, construction of Office-spaces will be delayed due to disruption in the supply chain of vendors.
It also suggests that Co-working spaces could face long term impact. Seat based short term leases might see a fall due to a surge in ‘work from home’ productivity during lockdown.
Because of Covid 19 many offices allowed its staff to work from home and the fear is that it may be extended.
CREDAI MCHI President, Nayan Shah, says “There is no denying that the Indian Real Estate sector is currently in survival mode. Due to Covid 19 and the subsequent lockdown, the Indian real estate industry, along with its allied industries, are experiencing a substantial slowdown in activities. This report by CREDAI MCHI emphasizes the very struggles of the sector at this point in time and highlights the impact experienced and anticipated by more than 100 leading developers of MMR and various real estate experts and professionals across MMR.”