Many employees are reluctant to travel by public transport due to the fear of community spread of Covid-19 and hence are in search of a suitable accommodation.
Private equity inflows into Indian real estate is expected to be 45-50% lower in 2020 from a year ago.
Several of these companies like TikTok occupy premium office space in metro cities, and if the ban continues, they will start vacating their offices, say property brokers.
Launched after 2013, many of these projects were in the final leg of completion. With almost zero construction activity in the last few months due to the lockdown, the completion deadlines for almost all these projects have been extended.
Property sales across India have come to a standstill after the coronavirus outbreak. It has hurt residential sales and also dented the leasing of commercial assets across the country, leading to a severe liquidity crunch for the builders.
The current lockdown has brought the industry to a standstill position and the recovery curve will depend on the fiscal stimulus rolled out by the government.
With this initiative, all services and operations of MahaRERA can be delivered digitally, without any need for physical visit by allottees, promoters, agents and advocates to the regulator’s offices. MahaRERA will thus be 100% digital with zero paper and zero footfalls.
Most luxury brands feel that the negative impact of the outbreak will linger even after the lockdown is lifted, it said in the ‘Impact of Coronavirus on Luxury Industry’ study. “Around 79% of the respondents feel that customers are in a wait-and-watch mode since they are unsure of the likely turnout of events,” Luxury Connect said.
The virus can cause neurological complications like headache, dizziness and confusion.
With no commercial or residential deals closing due to the lockdown, agents are keen to learn about the intricacies of social media marketing and also various legal provisions such as force majeure that they will have to grapple with later.
Residential prices had either remained flat or moved up very tardily in 2019.
“The impact of COVID- 19 is far reaching for most global markets. India’s key markets will also be faced with the uncertainty mostly due to a significant erosion of confidence amongst buyers across spectrum,” said Shishir Baijal of Knight Frank India.
Land is a state subject. Regulating it has always been difficult. The Narendra Modi government’s strategy to show the direction at the Centre and letting each state choose its own pace seems to be working. Take Rera — 31 states and Union territories have notified it already.
In a statement, the Union Housing and Urban Affairs Ministry said the measure will safeguard the interest of homebuyers, who will get the delivery of their flats although with a delay of a few months, but it will definitely ensure the completion of the projects.
On the outbreak of COVID-19 and its impact on the real estate sector, the company said: "the pandemic appears to have impacted consumer sentiment and spending appetite in the short term." The crisis may have a longer-term impact on the economy, the nature and full extent of which can only be gauged as normalcy returns, it added.
“Many business owners (private sector, public sector and public listed) have traditionally owned their real estate. These typically include factory operations coupled with offices and warehouses. While, in some cases, the real estate may have become non-core, in other cases such real estate is essential for the business operations,” the report said.
RBI’s decision to reduce reverse repo rate by 25 basis point and additional liquidity for NHB will also accelerate and facilitate bank credit flows towards to the beleaguered sector in the wake of Covid19 crisis.
All RERA registered projects whose completion date (including revised completion date) expires on or after March 15, the authority has extended the deadline by three months.
Immersive tech has the potential of becoming one of the most useful tools for design communication. As quick and effective communication and streamlined collaboration become the need of the hour, immersive technology is giving people the opportunity to work remotely without a hitch.
Uttar Pradesh government had signed a memorandum of understanding with NAREDCO to provide employment to returning migrant workers. NAREDCO has 250 member developers in UP and it is in the process of creating a group of members for employing migrant workers.
EY said that developers will now have to aggressively invest in building seamless end-to-end digital journeys for customers, employees and channel partners.
For potential home buyers, it will be an excellent buying opportunity, Parekh said.
The new set of stuck projects that have been finalised for investment are located in cities and towns such as Bengaluru, Chennai, National Capital Region, Bahadurgarh, Sonipat and Rewari.
Eight TIER-I cities witnessed an average price decline of around 4% but most of the home buyers in Bengaluru, Ahmedabad, Pune, and Chennai seemed certain about the variation in the prices due to this crisis.
During these two months, total number of customer walk-ins dropped by almost 80%, while 7,766 confirmed scheduled site visits were cancelled due to COVID-19 in a span of 30 days.
“With this recent pandemic outbreak, the real estate sector is likely to be handicapped in the short term, impacting over 250 related industries and economic sectors."
"COVID-19 has changed buyer preferences with more people now preferring risk-free investments. 62 per cent prospective buyers prefer to buy a home from leading developers with least project execution risks even if the property is relatively higher priced," Anarock said in a report.
"We direct that rate of interest on the outstanding premium and other dues to be realized in all such cases at the rate of 8 per cent per annum and let the Noida and Greater Noida Authorities do a restructuring of the repayment schedule so that amount is paid and Noida and Greater Noida Authorities are able to realize the same," the bench said.
For now, the economy will have to be put in a deep freeze. The fight will have to be led by GoI.
The report said the impact has been most drastic in Mumbai and Delhi, while the situation in Bengaluru is slightly better.
The impact of change in the investment climate was reflected in the asset allocation.
“The pain has brought us all together. Real estate has been facing multiple problems and now the current crisis of Covid-19 has added further pressure. Earlier, we were communicating differently with the government and that was not the right way,” said Harrish Jain, vice president, Brihanmumbai Developers Association.
According to Savills, commercial office space will bounce back over the next few quarters, driven by India’s availability of talent pool and low rentals as compared to other major global office markets.
Maharashtra Real Estate Tribunal rules in homebuyers’ favour to get booking amount refund.
‘India has the demographic benefit compared to the rest of the world’
With the pandemic and the ensuing lockdown, demand for horticultural produce is likely to be impacted more than that of food grains. Food grains have the government's minimum support price (MSP) and procurement support, the report explained.
The net absorption during the quarter stood at 7.40 million sq ft, down 22.6% on a quarterly basis and 36.5% lower on a yearly basis as transaction slippages impacted the leasing momentum towards the end of the quarter.
As and when they enter Indian shores, hopefully, towards second half of 2020, they will be scouting for bargains and value-pick options at their own terms and conditions.
The Uttar Pradesh government has signed a memorandum of understanding with real estate apex body, the National Real Estate Development Council (Naredco), to provide employment to returning migrant workers.
Experts say developers should not use the provision to delay rent to buyers in redevelopment projects.
"Preference is towards mix of all & not just one segment of the business,” said Pankaj Pandey.
India has become the key foreign market for Zyfra with more than 500 CNC machines connected to its MDCplus real-time machine monitoring and manufacturing data collection system in 2019.
The developers who are managing the society are sanitising all entry points and closed public areas including parks, gym, clubs and swimming pools. Since senior citizens are at greater risk, developers operating the senior citizen apartments, are also taking extra measures to prevent spread of the virus.
‘Commercial real estate might not do as well due to work from home and job losses’
‘Industry leaders would benefit from both the demand revival as well as consolidation.’
‘Technology will play a major role in the residential sector going forward’
The move is expected to offer some relief to stalled construction activities in areas that have so far not witnessed major outbreak of Coronavirus. This will also help in engaging and holding the migrant workers back at the project sites and avoid any strain further on human-economic crisis caused by the Covid-19.
“If you can overcome the crisis today, you may be able to stand up tomorrow,” he said while suggesting that an economic stimulus package for all industries across the economy should be at least 10% of the country’s GDP.
This will be done with all staff working digitally during this period. The working of MahaRERA from May 18, will be decided only after further review and subject to further directions from state and central government, the regulator said in a statement.
Placement firm TeamLease Services has received 22,367 resumes in May from hospitality sectors alone, up a staggering 444 per cent from 4,109 in the previous month. Professionals who are proactively looking out have either been handed out pink slips or are facing job threats as their companies take the restructuring route, said executives aware of the matter.
According to PropShare Capital, a real estate investment platform, the asset rates are under pressure in the current scenario and lower asset acquisition cost for investors will ultimately lead to better yields later.
More than 130 million so-called economic impact payments were sent to taxpayers as part of the USD 2.4 trillion coronavirus relief package enacted in March.
The six months extension will also be provided to such projects that have already availed one-year extension as provided in the RERA Act on or after March 25. UP RERA Secretary Abrar Ahmed said no fees will be charged from the promoters for the extension.
A senior official of an infrastructure company said the shortage of workers is forcing companies to resort to poaching by luring them with lucrative offers. The senior vice-president of Prestige Group (business operations-Hyderabad) R Suresh Kumar told that one of their contractors has booked flight tickets to bring back 10 carpenters from Patna to Hyderabad.
More than 30% construction workers are staying away from work sites due to fear over coronavirus infection and many of them may have returned to their villages or are planning to do so, they said. Contractors are also not keen on pushing them either.
“It is a Black Swan event that comes with implications for the world economy. The disruption to business cycles is bound to impact commercial real estate decision-making as well,” said Gautam Saraf, managing director at Cushman & Wakefield in Mumbai.
The outbreak of Coronavirus is expected to further exacerbate the weakness of residential real estate sector that has already been reeling from the adverse impact of the prevailing liquidity crunch.
The report said Bengaluru led the market with 30% of the total gross absorption, followed by Pune (18% share) and Delhi-NCR (15% share). “Indian market is likely to see adverse impact from the ongoing Covid-19 pandemic but is relatively better placed in terms of economic growth with GDP expected to grow at 4.4,” said Sankey Prasad, managing director and chairman, Colliers India.
For millions of Indians, the relationship with real estate has been reset by Covid-19 and the ensuing uncertainty. Companies, individual tenants, property owners, homeowners, builders and buyers are all struggling to make sense of the disruption and trying to assess where on the financial matrix they will end up when the virus eases up a bit.
The impact of Covid-19 outbreak globally may prove to be a key challenge for planned and proposed fundraising exercises through Real Estate Investment Trusts (REITs) which are expected to be either delayed or put on hold until the situation improves.
Workforce shortage is biting. Wages will have to be increased to keep migrants from leaving for villages.
The impact of the COVID-19 pandemic became more apparent in March as most businesses defer their real estate decisions. IT- ITeS (56%) as well as co-working (13%) occupiers drove leasing activity during the quarter. The last such drop was seen in Q1 2017, post demonetisation.
Like other cities of the world, Indian cities will also remain vulnerable to threats like pandemics unless we re-innovate urban design and products having a large public interface. Making them safe and resilient is a challenge for urban planners and designers alike.
Domestic steel demand in FY21 is likely to drop by around 12-15 per cent year-on-year with end-use industries being closed down and limited demand growth expected over the near term.
After being abruptly thrust into an overnight halt, the industry now needs to come to terms with the month-long inactivity. Goa’s realty slowdown has now been prolonged for over five years, beginning with the closure of mining.
The institutional inflow into the sector declined to $238 million, with only 5 deals concluded in 2020 until May end. The sector had recorded 25 deals in the corresponding period, while the entire 2019 had seen a total 49 deals worth $6.5 billion, showed data from Knight Frank India.
Corporates and retailers, both global and domestic, are expected to delay their decisions on fresh leasing of commercial spaces by at least a quarter.
The Centre’s ability to award projects appears constrained for the moment, and that’s not what investors in infra companies might want to hear.
It has reiterated the demand for one-time restructuring of loans, additional institutional funding, waiver of penal interest, policy innovations for triggering demand including customer- centric tax treatment of real estate and control of cartelization of construction raw material.
These sectors are now prone to defaults as business has come to a near standstill during the lockdown, said experts.
A vaccine won’t be ready until well into 2021, we’ll all be co-existing with Covid for the next year or longer.
Justice S Ravindra Bhat of the Supreme Court tells ET that if the legal world does not move ahead with the rest of the world, the judiciary could fall behind the times.
Total investments in FY 2019-20 fell to its lowest in four years, declining by 13% to $4,261 million over previous year levels of $4,780 mn, according to the ‘India Capital Markets Update – Real Estate Perspective Q1-2020’ report.
Developers said that earlier the finance ministry had eased income tax in 2010 as part of a government scheme to promote big residential and commercial complexes. But that was only for developers who had constructed and sold land measuring one acre or more.
While all three of the company’s manufacturing facilities at Chakan (Pune), Waluj (Aurangabad) and Pantnagar (Uttarakhand) had resumed production, albeit at partial capacity, “it would be almost foolhardy” to believe that demand will not be affected for at least the first two, if not three, quarters of FY2021, Bajaj said.
A surge in data consumption during the ongoing lockdown due to the Covid-19 virus outbreak has caused internet speeds to fall steeply, two separate studies by speed testing firms showed.
A week after markets regulator Sebi asked companies to disclose in detail their estimated and expected losses due to the Covid-19 pandemic, disclosures by some of the leading corporates show that loss of revenue, along with the availability of labour and logistics challenges, top the list of hurdles.
Almost every sector of the economy is impacted due to the coronavirus and the nationwide lockdown. A survey finds that 52% buyers want to postpone buying plans and that people want to spend less on buying property. Here are more findings from the survey.
Officials said the focus is on implementation of the measures announced in the package before any fresh ones are undertaken. "Focus, right now, is to implement the various elements of the package... A number of them need cabinet approval. So, the process has been set in motion," said one of the officials.
In their study, researchers said traditional economic recovery estimates, such as surveys and interviews, are usually costly, time-consuming and do not scale-up well. However, the scientists were able to accurately estimate the downtime and recovery of small businesses in countries affected by three different natural hazards using aggregated social media data.
As the Covid-19 outbreak hits companies hard, CFOs like Vaish are bracing for what many are referring to as the toughest phase in their careers.
As per the industry body, the real estate sector contributes to 10% of the national GDP and is the 2nd largest employer in the country. It has asked for interest rate on all real estate project loans to be re-fixed at the repo rate on which banks borrow from RBI. It has urged the central government to declare COVID-19 as ‘force majeure’ under Section 6 of RERA.
India is facing an unprecedented economic crisis, where some of the safe and traditional jobs are under the threat of being axed even as India breached the 2 lakh mark, with the highest spike of nearly 9000 cases in a day. Tough times ahead.
If food requirements of migrant workers are not met, then 'food riot' may be a real possibility.
Private offices, including IT and ITES, can operate with upto 33 per cent strength in red zones including Greater Hyderabad Municipal Corporation (GHMC) area, with the remaining people working from home. However, they can operate fully in orange and green zones.All construction activities are permitted in rural areas, orange and green zones.
"As COVID-19 evolved, and quickly changed how we have traditionally administered the GMAT exam, we transitioned focus to developing an online testing solution that empowers business schools and candidates to discover and evaluate each other during this interim period," said GMAT head
Tracking the Covid-19 pandemic in various parts of the world is but a click away with scientists developing live, interactive maps on user-friendly applications to help researchers, public health authorities as well as the general public.
India's economic recovery is more likely to be a 'U' or 'W' shaped rather than 'V', analysts said.
During the fourth quarter of the last fiscal, institutional investment in real estate dropped 44%.
Hopes that nations might set aside their differences to combat the coronavirus crisis have largely evaporated.
If we ignore biases in data sets and analysis, it will hamper the efforts to defeat the virus.
While Iran has acknowledged 43 deaths among 593 confirmed infections nationwide -- with a vice-president and deputy health minister among those testing positive -- unofficial tolls are much higher.
Rajnish Kumar told developers to keep bank account standard and improve perception about the business.
Market experts also fear that existing customers might delay payments of their instalments to developers, who in turn could default in repayment of principal and interest on bank loans.
‘Expect significant increase in delinquencies in construction housing loan segment’
To invest Rs 300 cr in Wadhwa's Residential Project in Mumbai's Mulund suburb
The new agreements are being drafted for both residential and commercial properties as both -- property owners and tenants -- seek clarity in case of another lockdown disrupting life. The lockdown clause has gained importance as force majeure clause.
Among the state authorities, Maharashtra, Karnataka and Uttar Pradesh have extended the project completion deadlines by 3 months, while Madhya Pradesh and Tamil Nadu has extended the same by 6 months.
‘We are at 50% of our capacity and we hope to get to 70-80% in the next 4-6 months.’
Even such hallowed traditions as the pope's messages to the faithful on Saint Peter's Square have been replaced by prayers that Francis reads into a camera from the seclusion of his private library.
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