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.
JLL India's Commentary on Impact of COVID-19 on Hotel, Hospitality and Real Estate sector
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 $348 million on the external front."
"Given that the real estate sector contributes significantly to India's economic growth, it is important to broadly analyze 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."The Impact of COVID-19 on the Indian Hotel & Hospitality SectorAttributed 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 travelers 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 quarters one and two as a 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."