The Impact of COVID-19 on the Indian Real Estate Sector
Attributed to: Samantak Das, Executive Director and Head of Research, REIS, JLL.
“The COVID-19 situation remains fluid and uncertainty still looms on the possible economic impact of the outbreak. Global supply chains will be disrupted in the short-term and this will undoubtedly have some impact on manufacturing in India. At this stage, the UN estimates the trade impact of the epidemic for India to be a $348 million on the external front.”
“Given that the real estate sector contributes significantly to India’s economic growth, it is important to broadly analyse how the outbreak will influence this sector and it’s still premature to assess the current impact. We are already seeing a slump in the hotel and hospitality sector due to the cancellation of flights and closure of borders. The retail sector too will be challenged due to sourcing disruptions in the apparel, footwear and accessories space. Moreover, the slowdown is already being reflected in the delayed decisions by retailers to lease spaces. While the commercial sector has been on a strong foothold, investors and businesses will adopt a wait-and-see approach that we’re witnessing in other global markets.”
Attributed to: Jaideep Dang, Managing Director- Hotels & Hospitality Group, JLL
“Business-wise, it will likely have an impact on the hospitality sector, especially on luxury hotels. Luxury chains have about 60-65% foreign travellers in their total guest composition and a large chunk of their business will potentially be impacted this season. Luxury hotel rates are also likely to decline in both quarter one and two as result. A full rebound may take time but we could see some recovery signs in the third quarter depending on the wider situation. Mid-scale brands on the other hand, derive more business from local tourists but even for those chains two quarters are going to be challenging as domestic travel restrictions come into force. Occupancies will be hit for sure but given the fluidity of this global situation, assessing the impact is a challenging proposition.”
Precautions that JLL India is undertaking in light of the global pandemic
Changes to employee travel policies:
With a focus on the wellbeing and health of our employees, clients and communities, we have revised our employee travel policies in alignment with the guidance of global health and travel organisations. We are restricting inter-regional and intra-regional travel except in business-critical situations in which travel cannot be delayed or substituted with teleconference or video conference. We are also asking employees not to travel to the high-risk areas of Hubei province in China, Iran, Italy and the special care zone in South Korea. Additionally, we are following recommended safety procedures for cautions and quarantines if travel has taken place.
Changes to meeting policies
With a focus on our foremost priority--the wellbeing and health of our employees--we are discouraging attendance at large meetings and asking our people to consider conducting meetings by teleconference or video conference.
Steps being taken to safeguard our employees’ health and wellbeing in the workplace
The most effective way to keep our employees healthy is to share accurate information from credible, expert sources and local authorities, so we post helpful information in an easily accessible format on our intranet. We encourage employees to follow preventive personal hygiene practices recommended by health organizations and to stay home and contact health professionals if they feel symptomatic or have come into contact with someone who has contracted the virus. With our flexible work practices enabled by technology, many of our employees can be productive working from home