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.”

Related Stories

Gold Stories

Next Story
Resources

Schindler named among Forbes’ World’s Best Employers 2026

Schindler has been named among Forbes’ World’s Best Employers 2026, a global ranking recognising companies for their workplace environments.Compiled by Forbes in partnership with Statista, the ranking is based on independent employee feedback, including whether employees would recommend their organisation to friends and family.The company said the recognition reflected its focus on creating a workplace where employees can develop their expertise and build careers. ..

Next Story
Infrastructure Urban

India needs an export-execution mindset: Vishesh Jain

Interview with Vishesh Jain, Founder & CEO, EximpleWhat gaps in India’s global trade ecosystem led you to build Eximple, and what problem did you see businesses struggling with most?Eximple came out of a problem that all three founders had seen from different choke points in the trade ecosystem. India has millions of MSMEs and manufacturers, and many of them can make products that are genuinely competitive on quality. Yet only a small fraction is able to build meaningful international businesses. In our experience, the gap is usually not manufacturing capability; it is the ability to exe..

Next Story
Building Material

Nuvoco reports 13.5% revenue growth in Q2 FY27

Nuvoco Vistas Corp. Ltd. reported consolidated revenue of Rs 27.9 billion for Q2 FY27, up 13.5% year on year. Cement sales volume rose 9% to 4.7 million tonnes (MMT), while EBITDA increased 11% to Rs 4.11 billion.The company said it began its cement operations in 2014 with a 2.3 MMT per annum (MMTPA) operation at Nimbol. It now aims to reach 35 MMTPA of cement capacity by FY28, nearly 15 times its initial capacity. Its portfolio spans cement, ready-mix concrete and modern building materials.On sustainability and cost efficiency, Nuvoco partnered with CleanMax for a 46.4 MW wind-solar hybrid re..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

SPECIAL OFFER
QR Code