COVID-19 impact: Mumbai region residential bookings down 78% in February, March from January
Publish on : 2020-04-13 14:40:11
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.
MUMBAI: Bookings of residential apartments in Mumbai Metropolitan Region (MMR) in the last two months of February and March have declined 78% from January owing to the impact of Covid-19, said real estate developers and experts operating in the country’s most expensive property market.
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 of the study conducted among 100 members of developers’ body CREDAI-MCHI and various real estate experts.
Home loan collections have also declined 250% in March as against January, showed the study that was conducted between February last week and third week of March. While there was a 200% rise in cancellations in the third week of the study, the trend normalized to average figures in the last week of the study conducted by the developers' body.
In commercial segment, the study showed that existing tenants are likely to delay lease renewals to the second half of the year and will renegotiate rent free periods until lockdown. Construction of office spaces is expected to be delayed due to disruption in the supply chain of vendors. Co-working spaces could face long term impact as seat based short term leases might see a fall due to a surge in ‘work from home’ productivity during lockdown.
The nation-wide lockdown will adversely impact the operations of Industries and immediate investmens in Industrial properties. However, overall impact on the industrial assets will be low and recovery will be relatively faster than other real estate asset classes.
Due to the higher yields and stability in Indian office market, the study believes the investments will remain stable except for short term hiccups.
With Embassy REIT giving almost 48% return until the market crashed in the first week of March, India will witness an increase in investments as investors are still very bullish about the Indian office assets in the long term.