+
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.”

Next Story
Infrastructure Transport

Rs 19.5 Billion Meerut–Nazibabad Rail Electrification Complete

The Rs 19.5 billion railway electrification of the Meerut–Nazibabad section has been completed, marking a major step towards improving connectivity in northern India. The project covers 132 kilometres of track and is expected to enhance operational efficiency while reducing travel time and fuel costs.Officials from the Ministry of Railways said the electrification will enable faster, more reliable train services and contribute to reduced carbon emissions. The initiative aligns with the government’s broader goal of achieving 100 per cent electrification of India’s railway network by 2030...

Next Story
Infrastructure Urban

AU Small Finance Bank Secures RBI Approval For Universal Bank

AU Small Finance Bank has received approval from the Reserve Bank of India (RBI) to transition into a universal bank. The move will allow the Jaipur-based lender to expand its range of financial services and compete directly with larger commercial banks.Founded in 1996 as a non-banking finance company, AU Small Finance Bank became a small finance bank in 2017. The transition to a universal bank will enable it to offer a broader portfolio, including enhanced corporate banking, treasury operations, and new retail products.Managing Director and CEO Sanjay Agarwal said the approval marks a signifi..

Next Story
Building Material

India Cements Q1 Loss Narrows To Rs 276 Million On Higher Sales

India Cements Ltd has reported a consolidated net loss of Rs 276 million for the quarter ended June 2025, narrowing from a loss of Rs 831 million a year earlier. Consolidated revenue from operations rose 20 per cent year-on-year to Rs 17.9 billion from Rs 14.9 billion.The company attributed the improvement to higher sales volumes and better price realisations, which offset some of the impact of elevated fuel and raw material costs. EBITDA turned positive at Rs 1.1 billion, compared with a loss in the same period last year.Vice Chairman and Managing Director N. Srinivasan said the company will ..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Talk to us?