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Covid 19: Impact on Real Estate Sector
Real Estate

Covid 19: Impact on Real Estate Sector

Ashok Mohanani, Chairman, EKTA World and Vice President, NAREDCO Maharashtra:

“It is a very inopportune time due to the novel Coronavirus, there has been a set back across industries globally and nationally. The momentum in the housing market, which began to show some potential over the past few quarters, would likely slow-down in the first half of 2020. There is definitely a fall in the site visits by potential home buyers. This, in turn, will have a cascading effect for sales of property. This season may see a decreased velocity in sales due to host of factors including the restrictions imposed on citizens.”

Anurag Mathur, CEO, Savills India:

“While it is still early to assess the economic impact of the pandemic, the rapid spread of COVID-19 across the globe has disrupted several business activities, particularly travel and its allied industries. For the real estate industry, the COVID-19 situation could prove to be an additional dampener in the short term as the sector is already under intense pressure because of the ongoing liquidity crunch and weak market sentiment. However, it is important to note that these are temporary disruptions and would not hold back the economy and the industry in the long run. We do not see any significant impact on investments into the sector in the long run because of the pandemic.”

Lincoln Bennet Rodrigues, Founder and Chairman, Bennet & Bernard Group:

“While the emergence of the Coronavirus is expected to slow-down the real estate sector in general and may lead to lower footfalls, at Bennet & Bernard, we continue to see traction from potential customers. We are a leading luxury real estate developer known for our unique and exclusive holiday homes in Goa and we mainly interact with our customers through the digital mode as most of our buyers are from key metros and the international market. However, we feel that the decisions over commercial space take-up may be delayed due to travel restrictions. Also, a lot of developers in India depend on China for the supply of fixtures, furniture and fittings and that will be impacted to some extent. Going forward, we will have to keep a watch on the overall macro level as the longevity of the crisis is uncertain.”

Vikas Jain, Managing Committee Member, CREDAI-MCHI Raigad Unit, and CEO, Labdhi Lifestyle:

“The Coronavirus has affected the real estate sector very prominently. During auspicious festivals like Gudipadwa and Baisakhi, we usually see an uptick in the market, which is missing. The housing sales will be impacted adversely due to COVID-19. Last year, the festive season was affected due to extreme monsoon and now the sector is facing the challenge of Coronavirus. Also, prices of steel and other construction materials have a direct bearing on the real estate industry as India is a big importer of steel and iron products, technical construction equipment as well as plastic and fiber elements from China. With production in China going down, the prices of these materials are bound to increase, resulting in increasing the costs and reducing the profit margins of real estate developers in India.”

Ashok Mohanani, Chairman, EKTA World and Vice President, NAREDCO Maharashtra: “It is a very inopportune time due to the novel Coronavirus, there has been a set back across industries globally and nationally. The momentum in the housing market, which began to show some potential over the past few quarters, would likely slow-down in the first half of 2020. There is definitely a fall in the site visits by potential home buyers. This, in turn, will have a cascading effect for sales of property. This season may see a decreased velocity in sales due to host of factors including the restrictions imposed on citizens.” Anurag Mathur, CEO, Savills India: “While it is still early to assess the economic impact of the pandemic, the rapid spread of COVID-19 across the globe has disrupted several business activities, particularly travel and its allied industries. For the real estate industry, the COVID-19 situation could prove to be an additional dampener in the short term as the sector is already under intense pressure because of the ongoing liquidity crunch and weak market sentiment. However, it is important to note that these are temporary disruptions and would not hold back the economy and the industry in the long run. We do not see any significant impact on investments into the sector in the long run because of the pandemic.” Lincoln Bennet Rodrigues, Founder and Chairman, Bennet & Bernard Group: “While the emergence of the Coronavirus is expected to slow-down the real estate sector in general and may lead to lower footfalls, at Bennet & Bernard, we continue to see traction from potential customers. We are a leading luxury real estate developer known for our unique and exclusive holiday homes in Goa and we mainly interact with our customers through the digital mode as most of our buyers are from key metros and the international market. However, we feel that the decisions over commercial space take-up may be delayed due to travel restrictions. Also, a lot of developers in India depend on China for the supply of fixtures, furniture and fittings and that will be impacted to some extent. Going forward, we will have to keep a watch on the overall macro level as the longevity of the crisis is uncertain.” Vikas Jain, Managing Committee Member, CREDAI-MCHI Raigad Unit, and CEO, Labdhi Lifestyle: “The Coronavirus has affected the real estate sector very prominently. During auspicious festivals like Gudipadwa and Baisakhi, we usually see an uptick in the market, which is missing. The housing sales will be impacted adversely due to COVID-19. Last year, the festive season was affected due to extreme monsoon and now the sector is facing the challenge of Coronavirus. Also, prices of steel and other construction materials have a direct bearing on the real estate industry as India is a big importer of steel and iron products, technical construction equipment as well as plastic and fiber elements from China. With production in China going down, the prices of these materials are bound to increase, resulting in increasing the costs and reducing the profit margins of real estate developers in India.”

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