COVID-19 WILL IT RESET THE INDIAN REAL ESTATE SECTOR?

The Coronavirus outbreak, which originated in China, has infected lakhs of people worldwide.

- ANAROCK

Simultaneously, it has disrupted industries, trade, and business cycles, thus halting global economic activity significantly. Indian real estate sector, which was already struggling to reemerge from the past turbulence of structural changes, policy reforms, and the liquidity crisis, is now set to witness another major fallout. In usual times, the ongoing period normally sees an uptick in real estate activities owing to festivals like Ugadi, Gudi Padwa, Akshaya Tritiya and Navaratri when new launches and sales spike up. Unfortunately, 2020 seems to be different. Country-wide lockdown until the first week of May has halted all activities. As evident, project sites are shut, site visits have stopped, and construction activity has come to a grinding halt, eventually impacting housing sales. Also, developers have deferred their new project launches for an unknown period. Commercial real estate has also not been immune to the Covid-19 fallout. Corporate occupiers are seen delaying their leasing decisions and still several MNCs and businesses are testing new waters of the work-from-home option. If proved successful, it could impact leasing activities in the future. Retail businesses, highly dependent on consumer spending, are also witnessing a momentary slowdown and reduced interest from global brands who may now consider revising their expansion plans.

INDIAN COMMERCIAL OFFICE SECTOR: COVID-19 TO BREAK GROWTH MOMENTUM