COVID-19 Halts Booming Indian Real Estate Sector
India’s commercial real estate market has been running like wildfire in recent years, but the threat of coronavirus could bring that to a screeching halt. Should the pandemic force a slow down in economies of both India and the United States, then it could very much result in delayed decision-making, as well as curtailed capital expenditures. Together, these outcomes would slow down portfolio decisions.
Despite the fact that India’s commercial real estate market doesn’t really have anything to do with China, where the COVID-19 disease first broke out, it could be impacted if that same disease slows down the two aforementioned countries’ economies, according to one independent property consultancy. But why the United States? Well, both it and India accounted for 80% of the total absorption of 60 million square foot last year. As it happens, the commercial market has been quite the lone star when it comes to India’s real estate sector, expanding so far as to give investors whiplash.
Firms have taken to wanting locations in the business parks of Bengaluru, Chennai, Hyderabad and Gurugram. About 15 million square foot (25% of the total leases) of the total is based within Bengaluru, followed by the Delhi NCR. And as the number of people travelling declines, so too has the speed of decision making. Ram Chandnani, managing director of the advisory and transaction services at CBRE India, said that only those companies that have pre-committed will be going ahead with their deals, while others could be held up by at least a quarter, possibly two.
A Reduction in Business and Economies Around the World
While India’s real estate market may take quite the blow from the coronavirus pandemic, it’s not the only sector that will suffer. Around the world, businesses are closing for indefinite time periods, people are working from home instead of going into offices, and schools are shutting for the foreseeable future.
Yet, it’s not all doom and gloom, as people spending more time at home will find themselves with time to participate in other aspects of life. For example, online gambling and the like will likely see an upturn in the number of people wanting to access games to pass the time. And with this 22Bet casino bonus, you’ll be able to get additional boost on your first deposit in their bookmaker or casino section. Why not check it out and then see if the 22Bet platform is something that will cater to your gaming needs? Claiming the bonus will allow you to place even more bets at the casino. Therefore, you have more time to spend playing the games that you love. The games are waiting for you at 22Bet.
As for the real estate market in India, Shishir Baijal, operating as the chairman and managing director of Knight Frank India, said that remains unclear as to just how devastating the impact of COVID-19 will be on the industry. “These are still early days and the demand still remains strong”, he said. Of course, it depends upon how long it takes for things to return to some semblance of normality. Nobody yet knows how long the coronavirus pandemic will remain active throughout the world, so the real estate market of India can only wait and hope it won’t be too long.