What started as a kind of pneumonia caused by a coronavirus is today a killer. It was yet not a threat until it restricted to Hubei because it gave the impression of being contained. However, it is now a global outbreak with no guarantee of who can contract this killer virus.
Unfortunately, its reach is not limited to lives. It is impacting various aspects of the economy as well as real estate, especially in Asia. Life has come to a standstill in China with cities looking like ghost-towns. No markets are operative neither are malls open. People are forced to live inside their homes in self confined quarantine to save themselves from the deadly virus.
To contain the virus and to obstruct its reach into the individual countries too have imposed travel bans. Moreover, borders have been closed off. Consequently, tourism has almost stopped and the hotels are not earning as much anymore.
Here are a few insights into how has the real estate been affected due to the coronavirus outbreak:
- Shopping malls and restaurants feel the brunt of the outbreak. As crowded places have been advised to be avoided, people keep to their homes. Consequently, in Asian countries, businesses have suffered tremendously. Shopping malls are empty and closed off. Restaurants are no more working as people are no longer waiting to eat.
- Hotels are shutting down as people are not traveling anywhere at all. Travel restrictions mean that tourists are not reaching destinations. In Asia, there are countries like Thailand and Bali who are tourism centric and are heavily dependant on it for earnings.
- Paying rents have now become difficult. With no business and a sudden stoppage on people in places like malls, restaurants, etc translates to mean that the enterprises are not doing any business at all. Most of these businesses are run on rented locations and places. Hence playing rents has also become a huge hurdle now.
- Real estate enterprises understand the situation and therefore have asked higher management officials to take a pay cut till the economy does not stand back on its feet.
In all of these chaos real estate investors say that though the future cannot they can surely prepare for what may come next. The Asian experience in real estate is being taken as learning by investors the world over as they plan on cushioning the fall to the best of their ability.