The impact of COVID-19 and the ensuing lockdown on both the shopping centre and the retail industry has been extremely serious and challenging. In the last four months, not only India, but the entire world has been affected by this black swan event, leading to an economic crisis situation globally, as several other sectors are feeling the same pressure and on verge of collapse due to lack of business, debts and revenue losses.
The mandatory closure of the shopping malls for a period of over two months was a huge setback for the industry. The industry, which runs on crowds and footfalls, is still trying to deal with the new set of norms which is a totally new task as the pandemic continues to spread its reach pan India. The government and authorities are trying their best to flatten the curve, but the success rate is limited as of now.
Impact on Real Estate Sector in India
Talking about the situation of the real estate sector in India, Dr. Vishesh Rawat, Vice PresidentSales & Marketing, M2K Group says, “The real estate sector, especially commercial real estate has been hugely impacted by the lockdown and the Unlock situation in phases. With various limitations and measures, it is very challenging to get back the confidence of the consumer and to make him return to public places like shopping malls. The response so far has been good, but people are still scared as there is no respite and the number of positive cases are increasing every day.
Two of our properties M2K Rohini and M2K Pitampura are cinema centric properties and have been impacted due to the temporary closure of multiplexes due to pandemic. However, construction activities at our under-construction projects have been restored and we are making good progress there.”
Upcoming Malls: Challenges in COVID Times
As thousands of migrant workers and labourers left the metro cities for their villages, construction of malls and other commercial properties took a huge blow in the lockdown period. Despite the government’s permission to start construction, many builders and mall developers are still dealing with this labour shortage dilemma.
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